Feeds

TJX finds self at bottom of 300-bank pig pile

'Negligent misrepresentation' in data handling has its costs

The Essential Guide to IT Transformation

Associations representing almost 300 Northeastern banks in the US say they are suing TJX Companies to recover tens of millions of dollars in damages resulting from a data breach that may have exposed more than 45m credit and debit card numbers to thieves. Additional organizations from all over the country are likely to join the suit, which will be heard in federal court in Boston and seeks class action status.

Plaintiffs in the case include the Massachusetts Bankers Associated, the Connecticut Bankers Association and the Main Association of Community Banks. They allege in a press release that the owner of retail outlets including TJ Maxx, Marshalls and HomeGoods is responsible for "dramatic costs" to banks that have been forced to reissue new cards and cover fraudulent purchases drawn on compromised accounts.

"If we're successful against TJX, the nation's major retailers will finally wake up to the fact that not protecting consumer data is an unfair trade practice and that investment in data management systems to protect consumers and shield consumers against fraud and identity theft is required," the president and CEO for one of the plaintiffs said.

TJX first disclosed the breach in January but provided painfully few details. Last month it provided an update that said it lost about 45.6m card numbers to unknown thieves who intruded on the retailing giant's networks over a span of 17 months. Personal information, often including social security numbers, for at least 451,000 individuals was also lifted.

Fraud resulting from the TJX breach has been reported from all over the world, and the plaintiffs say banks to this day continue to receive lists of cards stolen through the heist. In March, authorities in Florida detained at least six individuals suspected of using pilfered account numbers to buy gift cards at Wal-Mart and Sam's Club stores. ®

Build a business case: developing custom apps

More from The Register

next story
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
'Things' on the Internet-of-things have 25 vulnerabilities apiece
Leaking sprinklers, overheated thermostats and picked locks all online
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Only '3% of web servers in top corps' fully fixed after Heartbleed snafu
Just slapping a patched OpenSSL on a machine ain't going to cut it, we're told
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.