The company behind a $400 million fraud scheme that made it easier for the elderly to shop online is apologizing for the mistakes and promising to hire more security.
The company, Kohl’s, apologized Tuesday for an error it made when trying to authenticate a shopper’s online purchase of a $2,000 Kohl Kucks, a $200 pair of shoes that is not a part of the scam.
The mistake occurred after an online shopper tried to buy a Kohl.com product, but was turned away.
“We are deeply sorry that this mistake occurred and we are taking steps to strengthen our system,” Kohl�s said in a statement.
The error was caught by a software program that is used to authenticates online purchases, and the company is testing a new system to ensure that the error does not occur again.
The software was developed by Kohls employees in conjunction with an outside company that helps businesses protect their intellectual property.
The problem arose because the software did not recognize the name of the shopper who wanted to use the Kohl website to buy the Kohls, said Mark Jaffe, Kohls senior vice president of product security.
He said the mistake could have prevented the fraud from taking place.
Kohl�s is also investigating whether the error was caused by fraudulently submitted credit card information, Jaffe said.