Feeds

TJX takes $118m hit over massive security breach

$2.60 each for exposed credit card

The Power of One eBook: Top reasons to choose HP BladeSystem

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. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
BMW's ConnectedDrive falls over, bosses blame upgrade snafu
Traffic flows up 20% as motorway middle lanes miraculously unclog
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.