Target security breach has cost banks and credit unions more than $200 million thus far

By on February 19, 2014, 1:45 PM
hacking, attack, security breach, theft, target, credit card, debit card

Consumers aren’t the only ones feeling the effects of the recent Target security breach. According to the Consumer Bankers Association and the Credit Union National Association, banks and credit unions have had to fork out more than $200 million thus far.

Much of that is related to the costs that banks and credit unions have incurred from replacing compromised credit and debit cards.

The attack, which took place from November 27 through December 15, resulted in the theft of some 40 million credit and debit cards. Collectively, banks and credit unions have replaced 54.5 percent of those cards, or 21.8 million. It’s likely to cost banks and credit unions even more money should fraudulent activity take place on compromised cards that have not yet been replaced.

More than 110 million customers were affected in the attack. Aside from the 40 million cards compromised, hackers got away with customers’ names, mailing addresses, e-mail addresses, encrypted personal identification numbers and phone numbers.

Target isn’t sitting by idle, however. The retailer has offered affected customers a free year of credit monitoring service and is in the process of developing a security-heavy credit card. What’s more, a fraud analyst recently estimated that Target may have to pay upwards of $420 million to help cover costs associated with the breach.

Were you affected by the Target breach and if so, have you had your debit / credit card reissued by your financial provider yet?

User Comments: 6

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Guest said:

The banks and credit unions should sue Target for incompetence.

wastedkill said:

Credit/ Debit card replacements are free...

1 person liked this | p51d007 said:

Well, considering the banks, Visa, Mastercard, retailers have been dragging their feet on upgrading security in 40 year old technology (swipe card) to a chip & pin based card, I guess it serves em right.

Sadly, they will pass this loss onto consumers, along with whatever upgrades to a chip/pin based system will cost.

Guest said:

I was unfortunate enough to shop at Target during on Black Friday and I was defrauded. I live in Washington but last week I received notice of transactions through my card worth upwards of $800 in Atlanta (worth noting I've never been to Georgia in my life). Luckily I was able to get them overturned before my bank account was charged and have my card replaced within 24 hours. Kinda feel I deserve it for not having my credit card changed soon as I heard Target was hacked though.

Guest said:

I think the issue has been that even though security is low on credit/debit cards and the associated POS/network systems, the bean counters said it cost too much to increase security. In other words, the bean counters say Security costs > Loss of revenue so no security improvements. Now with the current breaches, Security costs < Loss of revenue so we better do something about this.

tonylukac said:

We used the target redcard during that period because you get 5 percent off. We didn't get hacked. So use the target redcard at target.;

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