Target's data woes will be costly

  • Article by: Thomas Lee , Star Tribune
  • Updated: January 12, 2014 - 7:30 AM

The financial hit for credit card breach could run into hundreds of millions of dollars for the self-insured retailer.

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notoriosoneJan. 11, 1410:55 PM

T.J. Maxx got off easy. They essentially gave away each of their customer's personal information plus the cost of four Forever stamps per customer. $168,000,000 / 100,000,000 customers = $1.68 a piece or less than the price of a cup of Starbucks.

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tsap123Jan. 11, 1411:11 PM

Just a little correction - companies carry Cyber Liability policies for these situations NOT General Liability policies. The two are very different insurance products and a General Liability policy would not have covered this. Regardless, sounds like they self insured this exposure....will be interesting to see how this plays out for Target.

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rlwr51Jan. 11, 1411:18 PM

"On the cheap" is usually more expensive...

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warpspeed35Jan. 12, 1412:41 AM

LOL, I shopped at Target the whole holiday season and used CASH. No one got MY personal data!! No matter how secure the network, the data thieves will always figure it out. Answer: USE CASH!

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vegasgalJan. 12, 14 1:09 AM

One good thing came out of the whole mess for me. I have discovered cash again. Going shopping with just so much in your pocket does cut down on impulse purchases. Sorry Target, just paper towels and cat food today.

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bizsmithJan. 12, 14 5:42 AM

Don"t forget. Target is also a victim. Hopefully such a big "Target" will get the credit card companies and the US government off the dime to fix our antiquated system. The European countries are not perfect but they are so far ahead of us it's pitiful.

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nonewtaxesJan. 12, 14 7:06 AM

While castigating Target, let's not forget that a crime has been committed. Target probably did not initiate the crime against it's own customers. Who is working to find the criminals?

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swmnguyJan. 12, 14 8:01 AM

Security expert Mazur said what I was wondering. If this breach was caused by malware in the Point Of Sale (P.O.S., no joke) scanners, how did the bad guys get both card information and personal information? It seems more likely that all information was being kept in the same data base or in data bases stored in the same system, and that the bad guys got into Target's entire financial data network.

This is about more than computer network security. This speaks to high-level processes.

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optionJan. 12, 14 8:33 AM

Compared to the payouts that pharmaceutical companies have experienced over the years, one would surmise that Target's liability, although not insignificant, will not cripple the company. One thing not mentioned in any of the articles published to date is the potential economic impact this incident might have on the Twin Cities economy. I have a lot of neighbors who work on the corporate side of Target. I wonder how local jobs like these might be impacted?

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coverageguyJan. 12, 14 8:44 AM

To TSAP123 - A CGL Policy covers bodily injury, property damage AND Personal Injury, which includes "invasion of privacy." (See Part B of the Policy). Whether a CGL Policy covers data breach has been a large subject of debate in the insurance world and is even being litigated. Yes, specific data breach insurance is also available. However, the statistics on it show that not many companies have it.

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