Feeds

Heartland to pay Amex $3.6m for massive payment breach

Thanks, 'Segvec'

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Web data BLEEDOUT: Users to feel the pain as Heartbleed bug revealed
Vendors and ISPs have work to do updating firmware - if it's possible to fix this
OpenSSL Heartbleed: Bloody nose for open-source bleeding hearts
Bloke behind the cockup says not enough people are helping crucial crypto project
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Call of Duty 'fragged using OpenSSL's Heartbleed exploit'
So it begins ... or maybe not, says one analyst
Heartbleed exploit, inoculation, both released
File under 'this is going to hurt you more than it hurts me'
Parent gabfest Mumsnet hit by SSL bug: My heart bleeds, grins hacker
Natter-board tells middle-class Britain to purée its passwords
Experian subsidiary faces MEGA-PROBE for 'selling consumer data to fraudster'
US attorneys general roll up sleeves, snap on gloves
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.