Major supermarket chains experience data breach

By Advisen Ltd. on August 20, 2014

supervalu-kells-01By Anna Borgwing, contributing writer

Supervalu, one of the country’s largest grocery retailers, announced a “criminal intrusion” into the payment processing systems for many of its supermarket and liquor stores and franchises, resulting in the potential theft of payment card information for customers at least 200 stores and possibly more.

“The safety of our customers’ personal information is a top priority for us,” said Supervalu President and CEO Sam Duncan.  “The intrusion was identified by our internal team, it was quickly contained, and we have had no evidence of any misuse of any customer data.  I regret any inconvenience that this may cause our customers but want to assure them that it is safe to shop in our stores.”

Supervalu reported that cards used between June 22 and July 17 at its Cub Foods, Farm Fresh, Hornbacher’s, Shop ’n Save and Shoppers Food & Pharmacy locations in Illinois, Minnesota, North Carolina, North Dakota, and Virginia could be at risk for theft. However, the store chain has no evidence that any cards have been misused, but made its announcement to customers out of “an abundance of caution.”

Supervalu added that it has insurance protecting the company against cyber events and claims arising out of them. Both a third-party forensics investigation is proceeding, and the chain said it is cooperating with law enforcement officials. It warned that additional locations, time frames and data at risk could still come to light as the investigation develops.

Supervalu sold another grocery chain, Albertson’s, in 2013, but continues to provide IT services, including payment processing, to the chain. Albertson’s-affiliated stores experienced a related breach during the June 22 to July 17 window at Albertson’s LLC and ACME Markets, Jewel-Osco, and Shaw’s and Star Markets in California, Delaware, Idaho, Illinois, Indiana, Iowa, Maine, Massachusetts, Maryland, Montana, New Hampshire, New Jersey, North Dakota, Nevada, Oregon, Pennsylvania, Utah, Vermont, Washington, and Wyoming.

Supervalu said that it does not believe any losses experienced by the Albertson’s stores would be Supervalu’s responsibility. Both chains announced they would be providing one year of free credit monitoring and identity protection services to all affected customers.

Advisen generates, integrates, analyses and communicates unbiased, real-time insights for the global community of commercial insurance professionals. As a single source solution, Advisen helps the industry to more productively drive critical business decisions about pricing, loss experience, underwriting, marketing, transacting or purchasing commercial insurance. Visit www.advisenltd.com to learn more.