Estimates Put T.J. Maxx Security Fiasco At $4.5 Billion
Sharon Gaudin writes on InformationWeek:
The security breach at TJX Companies Inc. could cost the company $100 per lost record, or a total of $4.5 billion, according to the calculations of a database security company.More here.
IPLocks, a compliance and database security company, is basing the estimate on the accumulated costs of fines, legal fees, notification expenses and brand impairment, according to Adrian Lane, the company's chief technology officer. He added that $100 per lost record is an average figure for major data breaches, but they calculated expenses particular to TJX and came out with the same figure.
The Ponemon Institute, a think tank focused on record privacy and data protection, expects the TJX breach costs to be even higher. They cite costs in the range of $182.00 per record, based on research from November 2006 of the cost of breaches incurred in 31 separate incidents. For TJX, this translates to $8.6 billion.