Target tosses US$148m onto data breach barbecue
And even that sum may not hit the spot for hungry sueball-flingers
Target's infamous 2013 data breach, which resulted in the company being relieved of 40 million credit card numbers, has cost the company another US$148m according to its latest quarterly finance report.
The retailer dedicates a whole section of its quarterly statement to the breach, and says that “In second quarter 2014, the Company expects to record gross breach-related expenses of $148 million, partially offset by the recognition of a $38 million insurance receivable.”
The $148m sum covers “what the Company believes to be the vast majority of actual and potential breach-related claims, including claims by payment card networks.”
But this one isn't over yet, not by a long shot, as the statement goes on to say that “it is reasonably possible that the Company may incur a material loss in excess of the amount accrued.” That possibility exists because Target knows there are more claims in the works and has set aside the $148m as a best guess.
“The Company is unable to estimate the amount of such reasonably possible excess loss exposure at this time,” the statement continues.
Which suggests that there is more bad news coming for shareholders. And not just Target's, given the increasing incidence of mega-breaches. ®