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Neiman Marcus Hacking and Securing a POS System

John Fischer
Security Research Paper
9/22/2014

For several years we have been using the point of sale (POS) system for payment at major retailers. In the last year there have been several attacks on major retailers POS systems. In this paper, I will focus specifically on the breach of security at Neiman Marcus. In this discussion I will explain how to help secure a POS system.
Neiman Marcus was founded in 1907 by Herbert Marcus with his sister, Carrie Marcus Neiman, and her husband A.L. Neiman. Their initial investment was $25,000. The original Neiman Marcus was on the corners of Elm and Murphy streets in Dallas, Texas. In 1913 a fire destroyed the companies building and its entire inventory. A new building was built in 1914 on the corners of Main and Ervay, also in Dallas, Texas. Neiman Marcus’ headquarters is still located in this building. Neiman Marcus is a high end retail store. The target market for Neiman Marcus is the top 2% of the income bracket of the United States, plus the wealthiest people around the world. Neiman Marcus retails high end goods such as clothes, jewelry, cosmetics, home furnishings, antiques and even rare books. Neiman Marcus also has an online store, started in 1999, that offers customers access to high end luxury goods. In 1926 Neiman Marcus first issued their holiday catalog. Many different items have been offered in their holiday catalog, including life size robots and jetliners. They currently have 15,700 employees. In September of 2013, Neiman Marcus was sold to a group led by Ares Management for $6 billion dollars. From July to October of 2013, Neiman Marcus had customer credit card information stolen form it computer network, starting with the point of sale system. The hackers set off 60,000 alerts as they weaved their way through Neiman Marcus’ security

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