Feeds

Heartland to pay Amex $3.6m for massive payment breach

Thanks, 'Segvec'

Build a business case: developing custom apps

Heartland Payment Systems will pay American Express $3.6m to settle claims related to the criminal breach of its payment processing network last year.

It's the first settlement Heartland has reached relating to the hacking of its network, which the processor disclosed in January. There's no indication disputes with other card brands such as Visa and MasterCard have been resolved, although Heartland has had to pay fines assessed by them. Heartland has set aside $12.6m to compensate card companies for the breach.

The fees underscore the costs associated when data for large numbers of payment cards fall into the hands of criminals. Brands typically must respond by reissuing cards for millions of customers at considerable expense.

Albert "Segvec" Gonzalez, a former US government informer and prolific hacker, has agreed to plead guilty to participating in the Heartland breach. He and other hackers are accused of breaking into several other payment networks, in part by exploiting garden-variety SQL injection vulnerabilities on the their websites. In all, they made off with more than 130 million credit card numbers.

"We are pleased to have reached an equitable settlement with American Express," Heartland CEO Bob Carr said in a statement. ®

The essential guide to IT transformation

More from The Register

next story
Rupert Murdoch says Google is worse than the NSA
Mr Burns vs. The Chocolate Factory, round three!
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Know what Ferguson city needs right now? It's not Anonymous doxing random people
U-turn on vow to identify killer cop after fingering wrong bloke
Germany 'accidentally' snooped on John Kerry and Hillary Clinton
Dragnet surveillance picks up EVERYTHING, USA, m'kay?
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
Who needs hackers? 'Password1' opens a third of all biz doors
GPU-powered pen test yields more bad news about defences and passwords
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.