Target and Home Depot Data Breaches Cost Each More Than $250 Million
After completing a $67 million settlement with Visa in August regarding the high profile data breach Target experienced in late 2013, the company this week announced acceptance of a $39.4 million dollar settlement with MasterCard and issuing banks. Home Depot, who suffered a notable data breach in 2014, also reached a settlement with MasterCard according to court filings. Each retailer has incurred more than one-quarter billion dollars in expenses related to their respective data breaches.
While MasterCard tentatively approved a $19 million settlement back in April regarding the Target data, several issuing banks rejected the offer. In early December the parties reached an agreement that has Target compensating card issuers as much as $20.25 million with another $19.11 million going to MasterCard. This is Target’s third major settlement related to the November 2013 data breach that compromised more than 40 million payment cards. Target previously reached a $10 million settlement with shoppers and $67 million settlement with Visa and Visa card issuers.
Meanwhile federal court filings in Atlanta show that MasterCard also reached a settlement with Home Depot regarding their 2014 data breach. Financial terms of the settlement are not included in the filing but Home Depot previously reported expenses related the data breach had cost the company $252 million. Target reported similar but higher costs, $290 million, related to their data breach.
For more information: