Baldwyn, Miss. Hancock Fabrics has disclosed that PIN pad units at a limited number of Hancock Fabrics' stores were stolen and replaced with fraudulent PIN pad units during an August-September 2009 time frame.
As a result, account information and PIN numbers used at these locations may have been unlawfully acquired by third parties, according to the retailer.
The company said it has replaced every PIN pad unit in all of its stores with an upgraded model.
Hancock said it is working closely with federal and local law-enforcement officials and the major payment-card brands in the investigation.
Hancock sent an open letter to consumers addressing the breach, and is providing additional information and resources on the company's Web site at hancockfabrics.com/openletter as well as offering a toll-free telephone number daily for customer questions and assistance.
Hancock Fabrics currently operates 266 retail stores in 37 states.