Tuesday, May 1, 2007

New England Bankers Sue TJX for Breach

Via SecurityFocus (4/26/07) -

Three state-wide bankers associations -- Massachusetts', Maine's and Connecticut's -- announced on Tuesday that they had filed a class action lawsuit against retail giant
TJX.

Companies for damages caused by a series of computer breaches that exposed 45.6 million credit-card accounts.


The associations, which represent nearly 300 banks, paid up to $25 per card to replace credit-card and debit-card accounts considers to have been put at risk by attackers that took information from TJX's processing systems during online break-ins between July 2005 and early this year. While the fraud is not the fault of the issuing banks, they have to pay to replace any cards they deem to have been compromised by such breaches.

"Protecting consumers is our number one priority," Lindsey Pinkham, senior vice president of the Connecticut Bankers Association said in a statement (PDF). "However, retail breaches are getting larger and more frequent and we cannot continue to absorb the costs."

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This story is kinda old by now, but I wanted to go ahead and blog about it.

I believe this shows that sometimes the ROI on security can only be calculated once it is gone....

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