TJX Security Breach Settlement Announced
How much is customer security worth? The record-setting theft of data from cards used by “at least” 47.5 million shoppers at 2,500 TJX stores (T.J. Maxx, Marshalls, HomeGoods, A.J. Wright, Bob’s Stores, as well as stores in Canada and Europe) has led to a settlement of customer class-action lawsuit.
The company has refused to admit the truth of the allegations in the suits, saying that it agreed to the settlement in order to save time and money. TJX also refused to specify the amount of the settlement, though it has set aside $107 million for “estimated costs in 2008 and another $21 million estimated for 2009. Fifth Third Bancorp, which processed some transactions for TJX, is included in the settlement.
TJX customers who were affected are also being offered various levels of credit monitoring, identity theft insurance coverage, reimbursement driver’’s licenses that needed to be replaced, and some losses resulting from identity theft. Customers who demonstrate that they shopped at TJX stores and incurred costs related to the security breach may receive vouchers; and TJX will schedule a three-day “customer appreciation sale next year. In addition, TJX must undergo an expert evaluation of its computer security by an expert chosen by the plaintiffs in the suit.
Meanwhile, some of the stolen card numbers appear to have surfaced in Turkey, where they were supposedly sold by a Ukrainian who is not, however, believed to have participated in the actual data theft. Neither are the ten Floridians who were convicted a few months ago of using some of the stolen data to buy Wal-Mart gift cards. So far, in other words, the hackers are safe, and the company admits to no fault, though it “deeply regret(s) any inconvenience . . . customers may have experienced. . . .
Maybe it would be safer, and cheaper, just to pay cash.
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Curt Barry is president of F. Curtis Barry & Co., a multichannel operations consulting firm� with expertise in the selection and implementation of warehouse management systems. Learn more at: http://www.fcbco.com.
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