Sci-Tech -   

1

TJX data breach case worse than first thought

A A |  Email ThisEmail  | Print Facebook   

Date: Wednesday Oct. 24, 2007 10:54 AM ET

BOSTON — A group of banks alleged in a court filing that 94 million accounts were affected by the theft of personal data from TJX Cos. -- more than double the number the company previously reported in what already is considered the largest data breach in history.

The data breach affected about 65 million Visa account numbers and about 29 million MasterCard numbers, according to the court filing made public by a group of banks suing TJX over costs associated with the breach. The U.S.-based retailer owns 2,500 stores, including 252 Winners and HomeSense stores across Canada.

The banks cited sealed testimony from Visa and MasterCard officials, the Boston Globe reported Wednesday.

A Visa official estimated there were between US$68 million and $83 million in fraud losses on Visa accounts alone at banks and other institutions that issued the cards, the newspaper said.

TJX had previously said the hackers who breached its systems compromised at least 45.7 million credit and debit card numbers as far back as 2003.

The company has said about 75 per cent of the compromised cards were expired or had data in the magnetic strip masked, meaning the information was stored as asterisks rather than numbers.

A spokeswoman for Framingham-based TJX, which operates more than 2,500 stores worldwide under such brand names as TJ Maxx and Marshalls, told the Globe she couldn't immediately discuss the filing. She said the company doesn't generally discuss pending litigation.

Spokesmen for Visa and MasterCard did not respond to questions from the Globe.

No one has been directly charged with the breach. Six people in Florida were found guilty of using phoney credit cards with numbers stolen from TJX to buy goods illegally.

Last month, Canadian privacy officials faulted TJX for failing to adequately protect customer information. The investigators said TJX believed the intruders gained access to the data through wireless local area networks at two Marshalls stores in Miami. The networks use radio waves to collect and transmit data, such as credit card numbers.

The claims filed by the banks on Tuesday are part of ongoing litigation between TJX and Fifth Third Bancorp of Ohio, the bank that handled its card transactions, as well as a larger group of institutions including the Massachusetts Bankers Association.

TJX has reached a tentative settlement with attorneys representing consumers harmed by the breach.

If the deal is finalized, they would receive benefits including cash or merchandise vouchers and credit. TJX has estimated the price of the deal at around $256 million, but several analysts have estimated the breach could cost TJX $1 billion, including legal settlements and lost sales.

Share with your social Network:

Facebook DIGG Newsvine Delicious Twitter StumbeUpon Reddit Yahoo! Buzz

 

Advertisement

Contest

Today's Sci-Tech Stories

Jeff Weiner, second from right, LinkedIn's CEO, celebrates the company's listing, at the New York Stock Exchange, Thursday, May 19, 2011. (AP / Mark Lennihan)

LinkedIn's 4Q revenue doubles, stock soars

More

This image taken from video by the crew of Expedition 30 on board the International Space Station shows a sequence of shots on a pass from near the border of British Columbia and Washington state, near Vancouver Island, to southern Alberta, near Calgary. The main focus of this video is the Aurora Borealis over Canada. (NASA)

Stunning video from space captures northern lights

More   1 Comments 1    4 Video(s) 4

illinois nuclear reactor, byron nuclear

U.S. sets vote on 1st nuclear reactor since 1978

More