http://krebsonsecurity.com/2014/02/target-hackers-broke-in-via-hvac-company/

By Brian Krebs
Krebs on Security
February 5, 2014

Last week, Target told reporters at The Wall Street Journal and
Reuters that the initial intrusion into its systems was traced back to
network credentials that were stolen from a third party vendor.
Sources now tell KrebsOnSecurity that the vendor in question was a
refrigeration, heating and air conditioning subcontractor that has
worked at a number of locations at Target and other top retailers.

Sources close to the investigation said the attackers first broke into
the retailer’s network on Nov. 15, 2013 using network credentials
stolen from Fazio Mechanical Services, a Sharpsburg, Penn.-based
provider of refrigeration and HVAC systems.

Fazio president Ross Fazio confirmed that the U.S. Secret Service
visited his company’s offices in connection with the Target
investigation, but said he was not present when the visit occurred.
Fazio Vice President Daniel Mitsch declined to answer questions about
the visit. According to the company’s homepage, Fazio Mechanical also
has done refrigeration and HVAC projects for specific Trader Joe’s,
Whole Foods and BJ’s Wholesale Club locations in Pennsylvania,
Maryland, Ohio, Virginia and West Virginia.

Target spokeswoman Molly Snyder said the company had no additional
information to share, citing a “very active and ongoing
investigation.”

It’s not immediately clear why Target would have given an HVAC company
external network access, or why that access would not be cordoned off
from Target’s payment system network. But according to a cybersecurity
expert at a large retailer who asked not to be named because he did
not have permission to speak on the record, it is common for large
retail operations to have a team that routinely monitors energy
consumption and temperatures in stores to save on costs (particularly
at night) and to alert store managers if temperatures in the stores
fluctuate outside of an acceptable range that could prevent customers
from shopping at the store.


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