Target has agreed to pay $10 million to settle a class-action lawsuit filed against the company over a massive security breach of their systems in late 2013. The proposed settlement, which still has to be approved by a federal judge, will see victims compensated by as much as $10,000, depending on the circumstances.
The breach of Target's security systems was one of the largest to date. Hackers stole network credentials from a contractor, uploaded malware to infect point-of-sales systems in all of the company's 1,934 stores, and proceeded to steal the credit and debit card details of 40 million people who shopped in the busy holiday period between Black Friday and December 15, 2013.
On top of the credit card related theft, hackers were able to steal the information of 70 million users; information that included names, email addresses and phone numbers.
To make matters worse, Target knew about the security issue before the data theft took place, but did absolutely nothing to fix it. This lead to both the head of technology and the CEO of Target resigning, while the company did attempt to strengthen their credit card security in the months after the attack.
The security breaches reportedly cost banks and credit unions a fortune. More than $200 million has been spent replacing and reissuing compromised cards, as well as in preventing fraudulent purchases and reimbursing any affected customers.
A court hearing for the settlement proposal has been scheduled for Thursday, after which victims should discover how they will be compensated.