back to article Target settles with MasterCard for US$19 million

US retailer Target's ongoing attempts to mop up after its colossal data breach have taken another step forward, after it settled with MasterCard. The deal will see the retailer toss US$19m into a pot that MasterCard will use to make “alternative recovery offers … to eligible MasterCard issuers worldwide that issued MasterCard- …

  1. Mark 85 Silver badge
    Thumb Down

    It's a sad statement...

    They will give twice as much money to MasterCard for “alternative recovery offers …" to the card issuers (banks) than to the folks affected by this breach.

    Oh.. they will probably spend a whole lot more money than what they offered on lawyers fighting claims from the banks (card issuers) and probably (former) customers.

    I wonder how much they've spent on improving their security?

    1. Fatman

      Re: It's a sad statement...

      I wonder how much they've spent on improving their security?

      But that doesn't lead to increased shareholder value.

  2. Anonymous Coward
    Anonymous Coward

    Cheaper than IT investment

    So where's the incentive to bother

  3. Spaceman Spiff

    AMEX - better by far!

    My wife was hit with fraudulent activity on her American Express card after using it at Target. Fortunately, AMEX is very good at detecting fraudulent activity on their cards, informed her immediately that someone was using her card info to purchase a computer in the SF Bay area, and asked if it were authorized. NO! was the answer. They contacted the police. The perpetrator was arrested with computer in hand. All of this tool a few minutes. She had a new card the next day...

  4. RW

    Target got what was coming to them

    Target has all the symptoms of a corporation entirely under control of bean counters who don't know the business and who are addicted to cutting corners and making false economies,e.g. inadequate security of their IT systems.

    But also this: everyone has probably heard by now of Target's failed entry into the Canadian market. After just two years, they've completely shut down and gone back to the US tail between legs. From personal experience I can testify that whoever was in charge of the Canadian stores didn't know the business, cut corners, and chased false economies. For the first time, Target had two-level stores. The dimbulb(s) who designed them put the men's clothing on one floor, the women's on the other, but only put change rooms for trying clothes on the floor with the women's wear. Perhaps it saved some money on construction, but I'm sure I wasn't the only man to simply walk away when I found out I had to trek to another floor to try on the items I was thinking of buying. The Target-in-Canada stores I visited seemed to be laid out entirely for the benefit of the company, not the customers. (The change room fiasco is merely an example.)

    Given the boneheadedness implied by the Canadian store designs, it comes as absolutely no surprise that Target would have also skimped on IT.

  5. Nameless Faceless Computer User

    I set up my American Express account to send a text message for every transaction. One transaction came in from a dating site around 2am. Hmmmmm. I logged into the banking website and immediately reported the transaction as fraudulent. I was greeted with a message to say that I cannot dispute transactions until my statement comes in, 3 weeks later.

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