Target Names CIO, Unveils Plans to Use Chip-and-Pin Tech

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Published April 29, 2014

| FOXBusiness

Target (TGT) said Tuesday it plans to use MasterCard’s (MA) chip-and-pin technology across its REDcard portfolio that will start in early 2015 The move comes as part of a slew of security enhancements to its platforms after last year’s massive data breach.  Target announced the REDcard improvement plans as part of a $100 million plan to move toward chip-and-pin technology. As the cards transition, all of Target’s 1,797 U.S. stores will have new payment terminals installed allowing payments from those chip-enabled cards to be accepted in-store.

"Target and MasterCard are taking an important step forward in providing consumers with a secure shopping experience, and the latest in payments technology," said Chris McWilton, president, North American Markets for MasterCard. "Our focus, together with Target, is on safety and security,” Chris McWilton, president of North American Markets for MasterCard said in a press release Tuesday.

Other improvements to Target’s security infrastructure include reviewing and limiting vendor access, developing new point-of-sale management tools, and reviewing the Target network firewall rules and governance process.

Target also announced it will appoint Bob DeRodes as the retailer’s chief information officer and executive vice president, charged with leading the company’s information technology transformation. Target said in a press release his responsibilities will include ongoing data-security enhancement, and developing a long-term information technology and digital roadmap for the retailer. DeRodes will begin in his new role May 5.

Target chairman, president and CEO Gregg Steinhafel said finding a clear path forward after the company’s breach has been a top priority, and appointing a new CIO is a step in the right direction.

 “I believe Target has a tremendous opportunity to take the lessons learned from this incident and enhance our overall approach to data security and information technology. Bob`s history of leading transformational change positions him well to lead our continued breach responses and guide our long-term digital strategy,” Steinhafel said.

DeRodes comes to Target with 40 years of information technology and data security experience, including as senior information technology advisor for the Center for CIO Leadership, Department of Homeland Security, the U.S. Secretary of Defense, and Justice Department. Further bolstering his experience are his positions as top technology positions at companies including Citi (C), Home Depot (HD), and Delta (DAL).

"I look forward to helping shape information technology and data security at Target in the days and months ahead. It is clear to me that Target is an organization that is committed to doing whatever it takes to do right by their guests," said DeRodes.

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