Thursday, 17 January 2008

TJX Compensates for Data Breach

To deter from a steeper bill in lawsuits, TJX has offered compensate Visa card users $40.9 million for a data breach occurring back in January. This move is supposed to “save” the company money from the waves of lawsuits that would come in if they opted not to compensate the Visa card users. What would have really saved them money is having a state of the art security standard implemented at the time of the data breach. You see, TJX was using an older security standard, the Wired Equivalent Privacy (WEP) encryption protocol, back in January.

Now TJX must compensate over $40 million as well as update their security measures, when all they needed to do was take care of the latter at the right time. For whatever reason, a $40 million mistake will hurt an organization – even TJX.


Ben Wright said...

Jason: The FTC treated TJX unfairly. The FTC should rethink the law of credit card security, and stop treating merchant victims of organized crime as culprits. --Ben

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