Feeds

TJX settles with banks over credit card breach

Now it only has to worry about disgruntled punters

Beginner's guide to SSL certificates

Retailer TJX has reached a settlement with all but one of the seven banks and bankers' associations that sued it after a security breach put millions of customers' credit data at risk of fraud.

Under the agreement the Massachusetts Bankers' Association, Connecticut Bankers' Association and Maine Association of Community Banks, along with Eagle Bank, Saugusbank, and Collinsville Savings Society, will dismiss all of their claims against TJX. In return they will receive a "negotiated portion" of the expenses they incurred in the case, excluding attorney fees, on a no-fault basis. TJX said the pay-out will be covered by reserves it set aside in its second quarter.

In addition, three bankers' associations that were party to the case against TJX agreed to drop their legal action and recommend that their 292 member banks agree to accept TJX's November offer to pay out up to $40.9m. Part of the settlement involves a promise by TJX to strengthen its security to achieve full compliance with the Payment Card Industry Data Security Standards, a benchmark it has already passed.

The set of agreements follows a recent court ruling denying class action status for the case. That ruling is subject to a pending motion for reconsideration and a possible appeal by the non-settling plaintiff bank, which hasn't been named.

TJX faces consumer and bank class action lawsuits over the exposure of as many as 100m customer records (TJX has held its hands up to the loss of 45.7m, but other estimates are double that) as the result of a security breach that lasted for two distinct six-month periods between 2003 and December 2006. Hackers broke into a system that stored data on credit card, debit card, cheque, and return details in an attack blamed on a poorly secured wireless network in one of its stores. Subsequent credit card frauds have been traced to data swiped as a result of these breaches, and a number of arrests have been made. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
SMASH the Bash bug! Apple and Red Hat scramble for patch batches
'Applying multiple security updates is extremely difficult'
Apple's new iPhone 6 vulnerable to last year's TouchID fingerprint hack
But unsophisticated thieves need not attempt this trick
Hackers thrash Bash Shellshock bug: World races to cover hole
Update your gear now to avoid early attacks hitting the web
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Who.is does the Harlem Shake
Blame it on LOLing XSS terroristas
Researchers tell black hats: 'YOU'RE SOOO PREDICTABLE'
Want to register that domain? We're way ahead of you.
Stunned by Shellshock Bash bug? Patch all you can – or be punished
UK data watchdog rolls up its sleeves, polishes truncheon
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.