JPMorgan CEO: Target Breach Is a Wake-Up Call

More Target-sized security breaches will happen if banks and retail stores don't start working together to further protect customers' data, JPMorgan Chase CEO Jamie Dimon said Tuesday.

JPMorgan has replaced 2 million credit and debit cards as a result of the breach, said Dimon in his first public comments about the event. The bank has replaced nearly all the affected cards.

JPMorgan is the world's largest issuer of credit cards.

Dimon expects that cybercrimes such as the Target breach will become more common if retailers and banks do not work on security, he said.

"This story is not over, unfortunately," Dimon said in a conference call with investors following the bank's fourth-quarter earnings announcement.

In December, Target said 40 million credit and debit card accounts -- including customers' card numbers, expiration dates, debit-card PINs and the embedded code on the magnetic strip on the back of cards -- were stolen in a data breach that happened between Nov. 27 and Dec. 15. Last week, the company disclosed that hackers stole an additional trove of data affecting 70 million people. That data included names and phone numbers as well as email and mailing addresses. The company said there is some overlap between the two data sets.

It is the second-largest theft of shoppers' credit card data, following the theft of 90 million customers' data from discount retailer TJX in 2007.

Dimon said the bank hasn't seen a reduction in consumer spending due to the breach, and there are no signs that consumers moved to other forms of payment, like cash or checks. The breach is not expected to affect JPMorgan's financial results, a company spokeswoman said.

Dimon, who had not publicly commented on Target's breach until Tuesday, said he expects that banks will issue cards with more security features on them in the future.

Banks and the stores...

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