Visa Deal Pushes Heartland Breach Settlement Costs (So Far) To $65 Million
Written by Fred J. AunJanuary 14th, 2010
A settlement with Visa announced Friday (Jan. 8) will require Heartland Payment Systems (HPS) to pay $59.22 million to compensate Visa card issuers for costs they incurred as a result of Heartland's massive 2007 data breach. The Visa settlement follows two other recent agreements, one with American Express and another with a group of breach-affected cardholders, and it will bring Heartland's breach-related settlement compensation tab to about $65 million.
But the bleeding won't stop there. HPS has yet to reach agreements with Discover, MasterCard or others. The Visa agreement, described in a filing with the Federal Securities Exchange Commission (SEC), calls for HPS to take out a $53 million loan to help it pay $59.22 million to Heartland Bank and KeyBank National Association, two of its sponsor banks. Visa will pay back to the banks $780,000 in fines it collected from them after the breach.
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One Comment | Read Visa Deal Pushes Heartland Breach Settlement Costs (So Far) To $65 Million
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-Ed
January 14th, 2010 at 11:41 am
Anyone else here reading “I.T. WARS”? I had to read parts of this book as part of my employee orientation at a new job. The book talks about a whole new culture as being necessary – an eCulture – for a true understanding of security, being that most identity/data breaches are due to simple human errors. It has great chapters on security, as well as risk, content management, project management, acceptable use, policies, and so on. Just Google “IT WARS” – check out a couple links down and read the interview with the author David Scott. (Full title is “I.T. WARS: Managing the Business-Technology Weave in the New Millennium”).