T.J. Maxx Settles Data Breach Case for $9.75 Million
TJX Companies, parent company of clothing retailers T.J. Maxx and Marshall’s, will pay $9.75 million to 41 states to settle a case involving a huge data breach in 2005 and 2006 after computer hackers gained access to the credit and debit card account numbers of 50 million store customers.
The settlement comes just as most states are grappling with escalating budget deficits. You might think that this little windfall could be used to help save the job of a firefighter or two, or maybe get the potholes filled in your hometown. Alas, after deducting roughly $1.75 million for expenses incurred by the investigations of the 41 attorney generals and $2.5 million, which will go toward creating a data security fund for states, the actual settlement money heading toward the states is just $5.5 million, or about $134,000 per state, if the money were evenly divided. (It’s not.)
Oh, and the bad guys? Of the 11 people indicted, two pled guilty to the original charges, and two others have pled guilty to related charges. I guess that seems like a partial victory, but there are far too many scammers ready to take their place.
