Target reaches $39.4m data breach settlement

Target has reached a $39.4 million settlement with banks and credit unions over expenses accrued following the massive 2013 data breach at the US retail chain.

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Target reaches $39.4m data breach settlement

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

According to Reuters, the settlement requires Target to pay up to $20.25 million to banks and credit unions and $19.11 million to reimburse MasterCard card issuers.

In May a similar $19 million settlement between Target and MasterCard fell through because not enough banks signed off on it.

The settlement has won preliminary approval from US District Judge Paul Magnuson, with a hearing on final approval scheduled for 10 May.

The deal covers financial institutions that had not previously released their claims against Target. In September Magnuson certified a class action by Umpqua Bank, Mutual Bank, Village Bank, CSE Federal Credit Union and First Federal Savings of Lorain, who claimed the breach forced them to reissue around 25,000 cards, at a cost of $30 million.

Target reached a $67 million settlement with Visa in August over the breach, which saw hackers steal the card details of around 40 million customers.

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Comments: (1)

A Finextra member 

25,000 cards to be re-issued. Fair enough. 

Cost of $30 million to do it? That's $1,200 per card!!

I can't help but think banks are exploiting these breaches and profiteering from it. Perhaps I'm being disingenuous ....

 

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