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TJX's Projected Breach Costs Increase to $216M




TJX's Projected Breach Costs Increase to $216M
TJX's Projected Breach Costs Increase to $216M



http://www.eweek.com/article2/0,1895,2216942,00.asp 

By Evan Schuman
eWeek.com
November 14, 2007 

Court filings have estimated that the data from some 96 million credit 
cards was accessed during the incidents.

In a footnote in its Nov. 13 earnings announcement, TJX increased its 
estimate of pre-tax charges for the world's worst credit card data 
breach to $216 million. Back in August, it had projected only a $168 
million pre-tax hit.

The data breach consisted of extensive cyber-thief activity within TJX's 
network from 2003 through June 2004 and then again from mid-May 2006 
through mid-December 2006, TJX said. Court filings have estimated that 
the data from some 96 million credit cards was accessed during the 
incidents.

"This reserve reflects [TJX's] estimation of probable losses in 
accordance with generally accepted accounting principles based on 
information available to [TJX] and includes an estimation of total 
potential cash liabilities, from pending litigation, proceedings, 
investigations and other claims, as well as legal and other costs and 
expenses, arising from the computer intrusion," TJX said in its SEC 
filing.

In the second quarter (which ended July 28, 2007), TJX "recorded an 
after-tax reserve of $107 million for its estimated exposure to 
potential losses" on top of an earlier $23 million hit, TJX said.


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