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Kmart becomes latest retailer hit by data theft

By WTOP Staff

ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Sears Holdings Corp. said Friday that a data breach at its Kmart stores that started last month may have compromised some customers’ credit and debit cards.

The data theft at Kmart is the latest in a string of hacks at big retailers including Target, Supervalu and Home Depot.

Sears Holdings, which also operates Sears stores, said that Kmart’s information technology department on Thursday detected a breach of its payment data systems.

The company was unable to provide the number of affected cards. But it said that based on its investigation so far, it believes no personal information, debit card PIN numbers, email addresses or social security numbers were obtained by the hackers. And there’s no evidence that Kmart.com shoppers were affected.

It said Kmart was able to remove the malicious software from its systems.

The news of the hack is a blow to Kmart’s Hoffman Estates, Illinois-based parent company, which is struggling with losses and sales declines as it fights to stay relevant with shoppers.

Sears said Kmart is working with federal law enforcement authorities and banking partners as it investigates the breach. It is also deploying software to protect customers’ information.

The company said that it will be providing free credit-monitoring protection for customers who shopped with a credit or debit card at Kmart stores during the month of September and through Thursday. It also emphasized that customers have no liability for unauthorized charges if they report them in a timely manner, according to the policies of most credit card companies. Sears said that the most up-to-date information will be available on its website, kmart.com and customers can contact its customer care center at 888-488-5978.

The announcement comes a few weeks after Home Depot, the nation’s largest home improvement chain, said that a data breach that lasted for months at its stores in the U.S. and Canada affected 56 million debit and credit cards. A pre-Christmas 2013 attack at Target Corp. compromised 40 million credit and debit cards.

The size of the theft at Home Depot trails only that of TJX Companies’ heist of 90 million records disclosed in 2007.

Target’s high-profile breach pushed banks, retailers and credit card companies to increase security by speeding the adoption of microchips in U.S. credit and debit cards. Supporters say chip cards are safer, because unlike magnetic strip cards that transfer a credit card number when they are swiped at a point of sale terminal, chip cards use a one-time code that moves between the chip and the retailer’s register.

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Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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