Michaels confirms breach of as many as 2.6M cards

Michaels Stores Inc. says Thursday that about 2.6 million cards used at its namesake stores may have been affected in a security breach but it has received "limited" reports of fraud.

The nation's largest arts and crafts chain, based in Irving, Texas, says that its subsidiary Aaron Brothers was also attacked. The company said that both stores were attacked by criminals using highly sophisticated malware that had not been encountered previously by the two security firms that were conducting the investigation.

"We want you to know we have identified and fully contained the incident, and we can assure you the malware no longer presents a threat to customers while shopping at Michaels or Aarons," CEO Chuck Rubin wrote in a post on the company's website.

The details come nearly three months after Michaels disclosed that it may have been a victim of a data breach.

A massive security breach at Target Corp. that affected 40 million cards has many shoppers worried about the safety of their personal data.

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