The Meaning Of TJX’s $168 Million Data Breach Cost
Written by Evan SchumanWhen the $17 billion retailer reported that pre-tax $168 million possible hit for its data breach, did it see it as anything more than a cost of doing business? And a minor cost at that?
With all of the numbers that TJX issued in its Tuesday earnings statement, the one that has generated the most attention was a $168 million estimated hit associated with the data breach announced in January, which saw consumer information from an estimated 46 million debit and credit cards walk out the door.First, the optimistic side. TJX did not, in fact, say that it actually has spent—or necessarily will spend—anything more than a tiny fraction of those dollars. The overwhelmingly largest charge—a $107 million after-tax figure for the chain's second 2008 fiscal quarter—was merely a "reserve," a nestegg for what TJX fears its costs may be. Theoretically, its costs might be much lower.
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Is there really an improvement between a mag swipe and contactless tap if multi-factor authentication is required?
-Ed
