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 The company said in January that it was working with federal law
enforcement officials to investigate a possible data breach.
Michaels Stores said the breach, which took place between May 8,
2013 and January 27, 2014, may have affected about 2.6 million
cards, or about 7 percent of payment cards used at its stores during
the period.
The company said about 400,000 cards were potentially impacted at
its Aaron Brothers unit by the breach, which occurred between June
26, 2013 and February 27, 2014.
There was no evidence that data such as customers' name or personal
identification number were at risk, Michaels Stores said in a
statement.
This is the second known data breach since 2011 at Michaels Stores.
Michaels Stores, whose major investors are Blackstone Group LP and
Bain Capital LP, said cyber security firms it hired found that
malware not encountered previously had been used in the latest
attack.
The company said it was working with law enforcement authorities,
banks and payment processors, and that the malware no longer
presents a threat.
Michaels Stores, which resubmitted its IPO documents late last month
following a restructuring, is the latest U.S. retailer whose systems
have been breached.
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Last year, the No.3 U.S. retailer Target Corp suffered a massive
security breach that resulted in the theft of some 70 million
customer records.
Reuters reported in January that smaller breaches on at least three
other well-known U.S. retailers took place and were conducted using
similar techniques as the one on Target.
U.S. retailers are planning to form an industry group for collecting
and sharing intelligence in a bid to prevent future attacks.
Michaels Stores, which owns several private brands such as
Recollections, Artist's Loft and Loops & Threads, competes with
Hooby Lobby Stores Inc, Jo-Ann Stores Inc and Wal-Mart Stores Inc.
(Reporting by Lehar Maan and Devika Krishna Kumar in Bangalore;
editing by Sriraj Kalluvila)
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