The intrusion hands the retailer the dubious honor of surpassing the 40 million stolen customer record mark, something that only CardSystems had been able to achieve.
By Larry Greenemeier,
InformationWeek, March 29, 2007 01:00 PM
TJX Co., the parent company of T.J. Maxx and other retailers, on Wednesday dropped a bombshell in its ongoing investigation of a customer data breach by announcing in an Securities and Exchange Commission filing that more than 45 million credit and debit card numbers have been stolen from its IT systems. Information contained in the filing reveals a company that had taken some measures over the past few years to protect customer data through obfuscation and encryption. But TJX didn't apply these policies uniformly across its IT systems and as a result still has no idea of the extent of the damage caused by the data breach.
As a result, TJX is a company under siege. The company recorded a fourth-quarter charge of about $5 million to cover the costs of containing and investigating the breach, as well as improving the security of its IT systems, communicating with customers, and paying legal fee. The U.S. Federal Trade Commission has launched an investigation of TJX. While the FTC wouldn't reveal the nature of the investigation or when it began, it's likely the result of the data breach. And lawsuits have begun to fly, including one by the Arkansas Carpenters Pension Fund, which owns 4,500 shares of TJX stock.
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