TJX Sets Aside $2.60 For Each Breached Customer Credit File
The Register reports that giant retailer TJX has allocated a total of $118 million to cover the costs and expected liability payouts resulting from the security breach of its customer databases. The long term security breach, which went undetected from July, 2005 until January, 2007, compromised data stored for over 45 million customer accounts. The money TJX set aside is comprised of an estimated cost of $11 million in security consulting fees along with a projected $107 million after-tax charge for settlement of pending lawsuits. If you don’t factor in the $21 of estimated non-cash charges against 2009, the figure only comes to about $2.60 per breached account. This figure seems awfully optimistic by some analyst firms and would seem to only scratch the surface of the company’s potential exposure.
Related: Consumers & Merchants - Who Has to Protect the Data?
[…] Data Compromised by Trojan TJX Sets Aside $2.60 For Each Breached Customer Credit File Portable Devices Pose Growing IT Security Threat Wireless Encryption Software - What You Need to […]