Michaels Stores Find More Fraud

Michaels Stores Inc reports PIN pad tampering spreading to 20 states across the nation

By Britni Day
|  Wednesday, May 11, 2011  |  Updated 2:04 PM CDT
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Michaels Stores Find More Fraud

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Michaels Stores Inc. has found the debit-card fraud from PIN pad tampering in stores was more far-reaching than initially reported.

On May 4, Michael's told customers that some credit card and debit card information in Illinois had been compromised due to the tampering. Now the company has confirmed additional stores in other states across also were affected. 

The Irving, Texas-based company reports it removed 7,200 PIN pads from stores as a precautionary measure. Of those removed, less than 90 devices (or 1percent of the total devices) were identified as being compromised.  

"The company has commenced replacing these PIN pads in all US stores," Michaels said in an official statement, "and expects the replacement to be completed within the next 15 days."

The list of 20 states with PIN pad tampering includes Illinois, Georgia, North Carolina, Ohio, Virginia, New Mexico, Iowa, Delaware, Colorado, Pennsylvania, Rhode Island, Utah, New Jersey, Nevada and Washington.

Michaels representatives say they continue to work with federal and state authorities in the investigation.

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