Yeah, it's either gross incompetence or some sort of malware placed on-site to copy the information before it's encrypted/transmitted. For the latter to occur, it would still point to inadequate and/or incompetent site security.
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So, if I used Paypal would the credit card on the account be compromised as well, or is it just people who entered it manually?
I bought Watch Dogs physical copy for $5 a few months ago, maybe half a year.
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Update: If you made a purchase with a credit card from their online store Gamestop.com (no breach in the physical stores...yet) between August 2016 and February 2017 you may have been compromised.
And Doc called it, they weren't storing the CVV2 so more than likely malware on site intercepting them.
Source: Just got a letter from them with a lukewarm apology and advice.
So done with this company.
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http://www.polygon.com/2017/4/8/15229498/gamestop-hacker-breach-credit-card-information-cvv2
The important part is the verification codes, as this data isn't even supposed to be stored by retailers. If you have shopped at GameStop.com or in store in the past few months, be advised.
Update via Jaxed, June 15:
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