Feeds

TJX agrees to pay banks $41m to cover Visa losses

Up to 100 million accounts stolen

Security for virtualized datacentres

TJX, the US retailing giant, has agreed to reimburse banks nearly $41m in losses stemming from the theft of as many as 100 million credit- and debit-card accounts in the world's largest data breach.

The tentative deal, which still must be approved by issuers representing 80 per cent of affected Visa cards, calls for TJX to pay up to $40.9m in costs for reissuing cards and covering fraud losses. TJX, parent company of Marshalls, TJ Maxx and other stores, also agreed to promote security standards that issuers have long tried to get merchants to adopt.

In return, banks agree not to sue TJX or its partners and Visa will suspend a portion of the fines it levied against TJX as a result of the breach.

The settlement, which was announced here, came a day after some 300 banks suing TJX lost their bid to have the lawsuit treated as a class action, a status that would have greatly lowered the cost of pursuing the case.

Visa is the largest payment card network. TJX has yet to disclose a deal with MasterCard, which also sustained losses as a result of the breach.

In January, TJX revealed that intruders penetrated its network defenses and over a 17-month span stole personal information relating to 45.7 million accounts. Evidence presented in the banks' lawsuit suggested the number of accounts exposed in the heist was actually 100 million.

TJX has been roundly criticized for running a network that was riddled with security holes. Among other things, the company protected wireless networks with Wired Equivalent Privacy, an encryption scheme that can be broken in less than an hour using off-the-shelf hardware and software. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
NASTY SSL 3.0 vuln to be revealed soon – sources (Update: It's POODLE)
So nasty no one's even whispering until patch is out
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
Forget passwords, let's use SELFIES, says Obama's cyber tsar
Michael Daniel wants to kill passwords dead
FBI boss: We don't want a backdoor, we want the front door to phones
Claims it's what the Founding Fathers would have wanted – catching killers and pedos
Kill off SSL 3.0 NOW: HTTPS savaged by vicious POODLE
Pull it out ASAP, it is SWISS CHEESE
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.