Fergie's Tech Blog

Analysts: TJX Breach Case May Cost Over $1B

Ross Kerber writes in The Boston Globe:

If the loss of millions of customer credit- and debit-card records from TJX Cos. plays out like previous data-breach cases, the final cost of the theft could add up to more than $1 billion, some technology analysts say.

The exact cost to TJX itself is unclear and may be lower. Insurance and tax credits may offset the Framingham retailer's expenses, which could be spread over several years. Banks that issue the credit cards may also have to pick up part of the costs.

Regardless, the liability would be among the highest associated with lost or stolen data, say analysts. They arrived at their estimates by comparing the cost of breaches at other companies in areas such as technology upgrades, contacting customers, reissuing cards, and lost customers.

posted by Fergie @ 4/12/2007 10:07:00 AM