Depot CEO discusses data breach probe

Home Depot says it continues to study its Internet security amid signs of a data breach.

During a presentation at a Goldman Sachs retailing conference this week, Home Depot CEO Frank Blake hit the topic head on.

“When you are in a situation like this, you have a choice,” Blake told investors before his scheduled remarks on the state of the business. “On the one hand, you can wait to communicate anything until you have the facts at hand or you can communicate the facts as you know them. We chose the latter path.” 

Cyber security is an increasingly important topic, Blake said said. He added that the company has invested in the area and that all of the company’s payment terminals are pin-and-chip compliant or will be by the end of 2014.

Chip-and-pin is a method of payment widely regarded as far more secure than traditional mag-stripe payment system, because it requires the actual presence of the payment card in most cases, among other reasons. 

The company on Tuesday said it was looking into a possible data breach. On Wednesday it issued a second a statement: “Our forensics and security teams have been working around the clock since we first became aware of a potential breach Tuesday morning working with leading IT security firms, including Symantec and FishNet Security, in that regard.

“There is no higher priority for us at this time than to rapidly gather the facts so that we can provide answers to our customers. We know these types of incidents can cause frustration and concern, and we apologize for that.”

The company reiterated the protections available to consumers, who will not be responsible for any possible fraudulent activity.

Meanwhile, lawyers are circling. Block & Leviton LLP, a Boston-based law firm, said it has begun its own investigation into the credit card data breach at The Home Depot. The firm, in a press release, said it is looking to see if the retailer “acted negligently or otherwise breached any duties owed to its customers.”