Target Says Credit Card Data Breach Cost It $162M In 2013-14

Or approximately as much as their failure in Canada.

Note that this number, while impressive, does not include the upcoming lawsuits from people whose data was irresponsibly risked. The hack exposed the fact that Target was both collecting and storing types of data it was legally required NOT to collect or store. UPDATE: actually they were required to have a type of security which they did not have. It wouldn’t have prevented the hackers from getting the material, but the material would have been encrypted. This is going to get ugly, and it’s going to get very, very expensive. The class action suits have already started forming.

And according to Brian Krebs, who knows such things, they only have about $100 million in cyber security insurance.

TechCrunch

When it comes to data breaches, retailers are one of the biggest targets these days, and today we have some detail on the costs around one of the more high-profile attacks. Target today said that it has booked $162 million in expenses across 2013 and 2014 related to its data breach, in which hackers broke into the company’s network to access credit card information and other customer data, affecting some 70 million customers.

The figure, revealed in the company’s Q4 earnings published today, includes $4 million in Q4, and $191 million in gross expenses for 2014, as well as $61 million gross for 2013. Target says that the gross number was offset in part by insurance receivables of $46 million for 2014 and $44 million for 2013.

This is also not including whatever expenses Target may incur as a result of class action lawsuits filed after the breach, or wider damage…

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Categories: Hackers

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