At the middle of December 2013, many U.S. customers were surprised with the unpleasant news. Target, that time the second largest national retailer, informed its clients about the massive personal data leak. More than 40 million credit cards were compromised.
The security breach occurred a few days before a Black Friday, the largest sale of a year. The anonymous hackers tracked the activities of the online buyers and collected personal and credit card data.
Target informed its main partners, banks, and online transfers operators, about the security breach. Then the long investigation started. As the result, in three years Target spent more than $300 million to neutralize the consequences of the accident.
One of the main problems in this investigation was the impossibility to define the weak place in the transaction security. It is known that the hackers stole the information in the moment of transaction, but the security officers of each side in this investigation claimed all the necessary security measures were taken.
This story reveals one of the numerous problems of the online trade. The transactions and other operation between the sides of the trade are closed an unclear. So, in the case of the accident it is almost impossible to define the weak places, and – if needed – decide, which side should compensate for the losses.
Loyakk proposes the blockchain-based solution for this problem. The new decentralized system makes all activities between banks, online shops, and the customers transparent for the authorized persons. While the blockchain systems are the most secure method of data storage and transition, there is no chance for the unauthorized access to the data.