Feeds

TJX settles with banks over credit card breach

Now it only has to worry about disgruntled punters

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Regin: The super-spyware the security industry has been silent about
NSA fingered as likely source of complex malware family
Why did it take antivirus giants YEARS to drill into super-scary Regin? Symantec responds...
FYI this isn't just going to target Windows, Linux and OS X fans
Privacy bods offer GOV SPY VICTIMS a FREE SPYWARE SNIFFER
Looks for gov malware that evades most antivirus
Home Office: Fancy flogging us some SECRET SPY GEAR?
If you do, tell NOBODY what it's for or how it works
HACKERS can DELETE SURVEILLANCE DVRS remotely – report
Hikvision devices wide open to hacking, claim securobods
'Regin': The 'New Stuxnet' spook-grade SOFTWARE WEAPON described
'A degree of technical competence rarely seen'
Syrian Electronic Army in news site 'hack' POP-UP MAYHEM
Gigya redirect exploit blamed for pop-rageous ploy
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
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.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
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?
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.