26 February 2017
Visit dh.com

TJX settles with MasterCard over security breach

03 April 2008  |  7419 views  |  0 MasterCard web screen shot

US retailer TJX has agreed to pay up to $24 million in a settlement with MasterCard following the massive security breach at its operations that resulted in the theft of millions of credit and debit card numbers.

Under the terms of the agreement, the retailer will pay up to £24 million to MasterCard issuers that were forced to re-issue payment cards following the data breach, in which over 94 million Visa and MasterCard accounts may have been exposed.

The deal is dependent on at least 90% of MasterCard issuers accepting the terms by 2 May, says TJX, and will be paid in the second quarter. TJX says the amount paid is covered by a $107 million reserve taken in relation to the breach.

The agreement follows a $40.9 million settlement with Visa that was disclosed in November last year. That pact was dependent on 80% of Visa issuers accepting the agreement, however TJX said in December that over 95% of eligible Visa issuers agreed to the deal.

Like the Visa agreement, the MasterCard pact is dependent on issuers agreeing not to sue TJX over the hacking.

In a statement Carol Meyrowitz, TJX president and CEO, says: "We believe this settlement agreement provides a fair resolution for MasterCard and its issuing banks and look forward to a high level of issuer acceptance."

In a MasterCard statement, Joshua Peirez, chief payment system integrity officer, says: "We believe that by working closely and cooperatively with issuers and merchants we can reduce the overall impact and costs of security breaches, while protecting consumers and accelerating fair and equitable resolutions of claims."

TJX also settled with the Federal Trade Commission last month, which said the retailer "failed to use reasonable and appropriate security measures to prevent unauthorized access to personal information on its computer networks". Under the FTC settlement TJX is required to submit to an independent security audit every two years for the next 20 years.

In December the retailer also reached a settlement with all but one of the seven banks and banking associations that had filed lawsuits following the security breach.

The retailer originally revealed on 17 January 2007 that the computer system it uses to process and store data relating to customer transactions had been hacked, potentially exposing millions of credit and debit card numbers. Data exposed in the breach is thought to have been used to make fraudulent purchases in Florida, Georgia and Louisiana in the US, as well as in Hong Kong and Sweden.

News of TJX's settlement with MasterCard comes as America's Identity Theft Resource Center, a non-profit organisation, warns that the number of data security breaches more than doubled in the first quarter in the US.

There were 167 breaches reported during the first quarter of 2008, this is more than double the first quarter in 2007 when 76 incidents were reported and more than a third of the total number of breaches for calendar 2007.

Already this year there have been a number of high-profile large-scale security breaches including an incident at GE Money where a computer tape containing confidential data belonging to over 650,000 credit card holders was lost and at US supermarket chain Hannaford where 4.2 million credit and debit card accounts were compromised after fraudsters installed malware on servers at all of the retailer's 300 stores.
KeywordsCARD FRAUD

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

MasterCard claims court ruling 'reaffirms legality of interchange'

MasterCard claims court ruling 'reaffirms legality of interchange'

14 March 2008  |  8054 views  |  0 comments
TJX settles with banks over credit card data breach

TJX settles with banks over credit card data breach

19 December 2007  |  9093 views  |  0 comments
TJX settles with Visa

TJX settles with Visa

30 November 2007  |  5573 views  |  0 comments
TJX breach gets bigger with 94 million card numbers exposed

TJX breach gets bigger with 94 million card numbers exposed

25 October 2007  |  9407 views  |  0 comments
TJX card fraud gang leader jailed

TJX card fraud gang leader jailed

18 September 2007  |  7686 views  |  0 comments
Ukrainian man linked to TJX hacking

Ukrainian man linked to TJX hacking

22 August 2007  |  6318 views  |  0 comments
New England banks to sue TJX over data breach

New England banks to sue TJX over data breach

25 April 2007  |  5442 views  |  0 comments
Massachusetts attorney general to probe TJX data breach

Massachusetts attorney general to probe TJX data breach

09 February 2007  |  8465 views  |  0 comments

Related company news

 
Visit Yelloco.co.ukvisit BNP paribasvisit dh.com

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
12719 views comments | 52 tweets | 72 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8580 views comments | 40 tweets | 34 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
6888 views comments | 7 tweets | 4 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6824 views comments | 18 tweets | 13 linkedin
hands typing furiouslyBlockchain Technology
6301 views 1 | 16 tweets | 7 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job