back to article Target settles with banks for $40m after data breach

Retail giant Target has agreed to shell out $39.4m to banks and credit unions who had pursued the company following losses suffered after an enormous data breach. Target has now resolved the class-action claims following lenders seeking to hold the company to account for reimbursing defrauded customers. $20.25m will be paid to …

  1. RIBrsiq

    The question, however, is:

    Would it have been cheaper to do IT right...?

    1. Trevor_Pott Gold badge

      No, that is not the question.

      The question is: did the individuals running the company make more money (in bonuses, etc) by doing IT wrong than they would have by doing IT right?

      What is good for the company or its customers is not actually relevant in the company is run.

  2. tiggity Silver badge

    win, win for the lawyers

    So approx $40M paid out - 40M credit card details lost, so a dollar per set of details. Cheap really.

    I did notice the huge amount spent on lawyers - $21m that went mostly on "legal and other professional services"

    So, the legal teams did well out of the breach, keeping the payout costs down but trousering an eye watering amount.

    Maybe, instead of ambulance chasing, bottom dwelling lawyers follow the hackers these days

    1. a_yank_lurker

      Re: win, win for the lawyers

      While a win for the legal beagles, it is a hit on the balance sheet. Fiduciary trust and other legal responsibilities could leave individuals open also to lawsuits. The cautionary tale is do IT right or risk being raked over the coals like Target. I doubt ~300 M would be anywhere near the cost of doing IT right for a good 10 to 20 years.

  3. frank ly

    I wonder

    Will Target's executives lose their bonuses this year or will they be given bonuses for speedy resolution of the settlement process; then pay rises to reflect their recently aquired and valuable experience in this important area of corporate activity.

    1. Anonymous Coward
      Anonymous Coward

      Re: I wonder

      Interesting question that one.

      Target's new CIO appointed this year was previously CIO at Tesco in the UK, Steve McNamara.

      Troy Hunt documented the security failings at Tesco in 2012 which weren't resolved before McNamara left. Presumably McNamara is actually fixing Target's IT and bonuses won't be subject to clawback in the event of future failures...

      http://www.troyhunt.com/2012/07/lessons-in-website-security-anti.html

  4. Anonymous Coward
    Anonymous Coward

    Corporate thinking 101:

    Hmmmm... spend money on prevention now, which will affect my bonus, or spend money possibly, perhaps, just maybe, sometime in the future, when it's someone else's problem...What to do? What to do?

  5. RW

    I wonder what connection this might have with Target's sudden decision to abandon its Canadian operations in their entirety, only about two years after opening for business.

    It seems obvious that Target has some real idiots working for it.

    1. Darryl

      That was because when they opened their stores in Canada, they jacked the prices up on everything, figuring the idiot Canadians wouldn't notice. Problem is, we noticed and stayed away in droves.

    2. Captain DaFt

      I hate the meme... but...

      "It seems obvious that Target has some real idiots working for it."

      It seems obvious that Target has some real idiots running it.

      There, FTFY... ugg.

  6. Richard Taylor 2
    Pirate

    Ahaa but will they conclude that non security is a cost centre? No, thought not.

  7. Gis Bun

    Bad year for Target. $40 million on this. They spent $100+ million starting in 2013 in Canada to open 125 stores only to close them earlier this year - losing probably $100+ million.

    Pure incompetence. I guess the board and senior management will get huge Xmas bonuses!

    1. Dadmin

      They deserve all the ill-will this hack generates and then-some. They still try and play the "we'll give you a 5% discount for joining our next data breach" game at the checkout. Should have done the security up front, instead of out the ass-end. Poor show all 'round.

      Dear Target,

      Why don't you just give every fucking customer a 5% discount, and stop trying to make us a part of your next data breach? No. Well I have many other shopping options.

      -An actual customer

  8. Mark 85

    I found it interesting in a conversation with an "associate". They get points for signing up customers to their card which equals cash. And most of the cash register types weren't working there when the breach happened. When they ask, and you respond with something like: "After that last breach, do you think I'm nuts?". You get a blank look and most will ask "what breach".

    But yeah... when I need to shop at Target, or Michaels or Home Depot, it's cash only, or a check (occasionally). Or my bank issued credit card and not theirs. I won't have a card issued by a store. Too damn risky.

  9. John Brown (no body) Silver badge
    Flame

    Pleased?

    Target spokeswoman Molly Snyder said the retailer was "pleased that the process is continuing to move forward"

    Liar, liar, pants on fire!

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