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TrustCo sues TJX over breach

TrustCo sues TJX over breach
TrustCo sues TJX over breach 

By James Schlett 
Gazette Reporter
August 29, 2008

GLENVILLE - TrustCo Bank Corp is resorting to litigation to recoup costs 
it incurred after reissuing thousands of credit cards to customers 
affected by the security breach at the parent company of the T.J. Maxx 
and Marshalls chains.

The Glenville bank holding company last month filed a lawsuit in 
Schenectady County Supreme Court against TJX Companies, shedding light 
on the financial burdens hackers are indirectly imposing on local banks 
and credit unions. The TrustCo Bank parent is suing the Framingham, 
Mass.-based TJX to recover the costs stemming from the cancellation and 
reissuance of MasterCard debit cards to affected customers. The breach, 
which TJX discovered in mid-December 2006, ended up costing the bank up 
to $20 per affected account.

The suit highlights the challenges financial institutions face as they 
try to cope with increasingly daring hackers who steal customer 
information from retailers. After the Scarborough, Maine-based Hannaford 
Bros Co. supermarket chain became a victim of hackers, TrustCo in March 
reissued 13,000 cards.

"TrustCo will continue to suffer monetary harm for the costs and 
expenses ... as additional fraud alerts and fraud charges are occurring 
and are discovered," the bank's suit states.


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