Feeds

Heartland coughs $41m to settle MasterCard claims

Bye-bye to breach badness

Securing Web Applications Made Simple and Scalable

Heartland Payment Systems has agreed to pay up to $41m to Mastercard in settlement for claims arising from a high-profile breach involving the payment processing firm two years ago.

Under the agreement, MasterCard issuers who suffered losses as a result of the intrusion will be eligible for compensation from a $41.4m fund, providing banks left in a hole agree to the arrangement by the end of June.

The proposed settlement is the third Heartland has reached with major card brands. A previous agreement Visa was worth up to $60m while a settlement with American Express was negotiated for $3.6m. The combined fund is $105m.

Heartland said in January 2009 that a breach occurred after hackers planted malware on its systems, but didn't say how many records were disclosed as a result. Later estimates suggested up to 100 million records were exposed, a percentage of which were later used in fraud.

Notorious hacker Albert Gonzalez was charged with masterminding the attack in August 2009 along with a similar assault on Hannaford Brothers, and attacks on ATM systems leased by 7-Eleven.

According to prosecutors, Gonzalez leased hacking platform used in the attacks and tested malware on behalf of his accomplices, including Russian hackers tied up in a loosely connected but prolific credit card fraud ring.

Gonzalez, a former US Secret Service informant, was jailed for 20 years back in March after he admitted responsibility over the even more damaging assault against retailer TJX. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.