Credential theft

Barnes & Noble PIN Pad Skimmer Attack (63 Stores, FBI-Delayed Disclosure)

πŸ“… 2012-08-01
Primary Source β†—

Incident Details

Barnes & Noble, the US bookseller, disclosed in October 2012 that PIN pad payment terminals at 63 retail stores across 9 states had been physically tampered with β€” skimming devices had been installed to capture both magnetic stripe data and PINs from payment cards. Barnes & Noble discovered the tampering in early September 2012 and immediately disabled all PIN pad devices at all 700 of its stores, reverting to swipe-only transactions. However, the company delayed public disclosure for approximately 6 weeks at the request of the FBI and Secret Service, who were conducting an ongoing investigation. Barnes & Noble disclosed the breach in late October 2012. The incident was notable for: (1) the scale of coordinated physical device tampering across 63 locations in 9 states; (2) the capture of PIN data enabling ATM cash withdrawals (not just card-present fraud); (3) the FBI-requested notification delay; and (4) Barnes & Noble’s proactive step of disabling all PIN pads nationwide despite only 63 confirmed compromised locations. The perpetrators were never publicly identified.

Technical Details

Initial Attack Vector
Physical tampering β€” attackers installed hardware skimming devices (including PIN capture overlays) on PIN pad terminals at 63 Barnes & Noble stores across 9 states; tampered terminals captured both the magnetic stripe data and PIN from debit card transactions

Timeline

  1. 2012-08-01 Breach occurred
  2. 2012-10-24 Publicly disclosed
  3. 2012-10-24 Customers notified