TJX Over-Budgeted Its Data Breach Costs Last Year By $30.5 Million
Written by Evan SchumanFebruary 25th, 2009
Although $19 billion retail chain TJX is suffering from the economy like all other chains, it recently got a $30.5 million financial windfall. How? By having underestimated how well it would do in court against various lawsuits and probes from the credit card industry's worst-ever data breach. It impacted more than 100 million consumer cards, and some of the data grabbed came from as early as 2003.
According to TJX's earnings statement issued Wednesday (Feb. 25), the chain had set aside significantly more money than it ended up needing to deal with the 2006 breach, thereby allowing the company to reallocate cash for other purposes and add about $18 million to the year's net income.
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One Comment | Read TJX Over-Budgeted Its Data Breach Costs Last Year By $30.5 Million
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Our Comment SPAM system is getting very aggressive these days and has been blocking legitimate comments. If you post a comment and don't see it appear within 2 hours or so, can you please send a heads-up to customer-service@storefrontbacktalk? Ideally, please include the time you posted the comment. That will allow us to try and hunt for it. Thanks! P.S. We're working on fixing the system, but we don't want to lose any valuable comments in the meantime.
-Ed
February 26th, 2009 at 9:27 pm
Probably because consumers who may have been involved couldn’t show the relationship for a claim, or were intimidated by the paperwork needed, as well as the resolution being a one-off shopping day to buy more stuff?
How do they get away with this?
RW