To Our Valued Customers:

 

For more than seven decades you have always been able to depend on Schnucks to provide a unique combination of
quality food, variety, value and service – both in our stores as well as in our communities.

We realize that with the recent credit card issue we fell short of expectations. On behalf of my family and company,
I sincerely apologize to you, our customers and teammates, for how this incident affected you, your friends and family.
I also want you to know what we are doing to ensure it never happens again.

This event was unlike anything we have ever experienced. A cyber-attack is not like a bank robbery where you know
immediately when it occurred and who was affected. The investigation requires painstaking analysis of digital
evidence that takes time.

  • When we first learned there might be an issue, we notified law enforcement and hired
    Mandiant, one of the nation’s top forensic firms. Investigators worked non-stop to find
    the cause and block it from continuing.

  • Our March 30 announcement that we shut down the attack came just 36 hours after we located
    the problem. Prior to that time, we had not found any evidence of an issue on our network.

  • We moved quickly to share what we knew, when we knew it, through a variety of media.
    Our Consumer Affairs team and store management continue to work directly with customers.

  • Because we have no ability to match card numbers with cardholder names, we could
    not contact you directly, so we shared important facts through media statements,
    postings on our website and signs and flyers in our stores.

  • We have always sought to maintain a secure processing environment, including using
    encryption technology. We also participate in annual third-party audits of
    our security measures, the last of which was in November 2012.

  • We have implemented new security measures and will continue to invest in security
    so that you can use your cards with confidence in our stores.

  • We worked with our payment processor and the credit card companies to provide
    at-risk card numbers to banks so those banks could block fraud and issue new numbers.
    However, the best way to avoid fraudulent charges as a result of this incident is to obtain
    a new card number.
    If you have not taken this step, please watch your statements carefully
    and notify your card provider of suspicious charges.

I give you my personal pledge that we will be relentless in working to maintain a secure payment processing system.

 

I thank those who helped to get us to this point including Mandiant, the Secret Service and FBI, our credit card and
banking partners and Schnucks teammates across the company. Most importantly, I thank all of you, our valued
customers, for your continued support.


Finally, I assure you that – guided by the same principles, values and commitment to customers that have served us for
nearly 75 years – Schnucks is the same family company today that we were before this incident and, in the months to
come, we will work hard to continue to demonstrate that.

 

Scott Schnuck

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