News

TJX reaches $9.7 million settlement in multistate suit for data breach

June 30, 2009

Credit Union Information Security News:The TJX Companies Inc. says it has settled with a multistate group of 41 Attorneys General, resolving the states' investigations related to the 2005 breach of TJX's computer system. The breach made headlines, as an estimated 94 million credit card numbers were taken in the hack. The company will pay $9.75 million, including $2.5 million to set up a new Data Security fund to be used by the states. The cost for this settlement is already reflected in the reserve of $107 million that TJX established in 2007 for potential losses. The company paid $40 million to Visa and $24 million to MasterCard earlier in 2007, and in 2008 the company faced stiff penalties from the Federal Trade Commission, including the stipulation that TJX obtain audits by independent third-party security professionals every other year for 20 years.

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