Feeds

TJX takes $118m hit over massive security breach

$2.60 each for exposed credit card

Secure remote control for conventional and virtual desktops

TJX, the American retail giant, has set aside $118m to cover costs and potential liability arising from a security breach to its database systems.

Crooks gained access to 45.6m credit and debit card records during the breach, which lasted 17 months between July 2005 and January 2007. TJX's $118m after-tax cash charge for Q2 2008 includes $11m in security consultancy fees and other expenses directly related to the attack and a contingency fund of $107m to cover liability payments arising from pending lawsuits.

In addition, TJX expects to chalk up non-cash charges of approximately $21m for FY2009.

The funds set aside by TJX are a fraction of the $1bn-plus losses estimated by analyst firms, and much less than guesstimates from security consultancies, who have a clear axe to grind in talking up the financial impact of security breaches. Tellingly, investors haven't marked down TJX share price significantly in the expectation of major losses down the road.

TJX announced the impact of the intrusions into its systems on its bottom line as it announced Q2 2008 results. Net sales for Q2 2008 were up nine per cent to $4.3bn, resulting in an income of $59m. ®

Beginner's guide to SSL certificates

More from The Register

next story
'Regin': The 'New Stuxnet' spook-grade SOFTWARE WEAPON described
'A degree of technical competence rarely seen'
You really need to do some tech support for Aunty Agnes
Free anti-virus software, expires, stops updating and p0wns the world
You stupid BRICK! PCs running Avast AV can't handle Windows fixes
Fix issued, fingers pointed, forums in flames
Regin: The super-spyware the security industry has been silent about
NSA fingered as likely source of complex malware family
Privacy bods offer GOV SPY VICTIMS a FREE SPYWARE SNIFFER
Looks for gov malware that evades most antivirus
Patch NOW! Microsoft slings emergency bug fix at Windows admins
Vulnerability promotes lusers to domain overlords ... oops
HACKERS can DELETE SURVEILLANCE DVRS remotely – report
Hikvision devices wide open to hacking, claim securobods
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.