Genesco Inc. Confirms Payment Card Data Breach in U.S. Stores

Specialty retailer Genesco Inc. announced on Friday that it experienced a criminal intrusion into the part of its computer network that processes payment card transactions. Some card details might have been compromised. However, the company quickly secured the affected network segment and expressed confidence that customers can now safely use their credit and debit cards in its stores.

Nashville, Tennessee-based Genesco stated that the intrusion affected its U.S. Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy stores, and some Underground Station stores. The company is currently investigating the extent of the compromise with the help of an outside expert.

Robert Dennis, Chairman, President, and CEO of Genesco, said, “Since we learned of the intrusion, we have worked diligently with outside experts to protect our customers’ information, and we are confident that they are safe shopping with their credit and debit cards at our stores. We recommend that our customers review their card statements and other account information carefully and immediately notify their card issuer if they suspect fraudulent use. We sincerely regret any inconvenience this attack on our network may cause our customers.”

Genesco noted that it is possible that the credit or debit card number, expiration date, and card verification code contained on the magnetic stripe of some payment cards used at the affected stores may have been compromised. However, the company currently has no reason to believe that personal information such as names, addresses, or Social Security numbers were acquired by the intruder. Additionally, payment card transactions in its e-commerce or catalog businesses, Lids Sports businesses, or its Canadian stores were not affected.

Genesco has notified law enforcement authorities and major payment card brands and is cooperating with them to identify those responsible for the intrusion. On Wednesday, Mastercard Inc. reported heavy traffic on its website, but credit card use was not affected. The company did not comment on whether the website had been taken down by hackers. Earlier, the media reported a series of hacker attacks on various websites belonging to organizations that denied service to Wikileaks, the whistleblower website. Mastercard had announced on Monday that it would no longer process donations to Wikileaks, terming the site’s activities “illegal.”

PayPal, Visa Inc., and other banks previously connected to Wikileaks also severed their ties with the website. These companies withdrew services after Wikileaks leaked secret U.S. diplomatic cables. In retaliation, hackers supporting Wikileaks brought down the websites of the credit card giants.

In Friday’s regular trading session, Genesco Inc. (GCO) traded at $38.86, up $0.20 or 0.52% on a volume of 1,580 shares. The stock has been trading in a range of $21.00-$41.20 in the past 52 weeks.

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