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TJ Maxx in trouble for hack
Written by Gizmo   
Monday, 05 February 2007 14:31

Fashion retailer TJ Maxx are in a bit of a spot this week, after hackers reportedly compromised their servers two weeks ago.

It would seem that parent company TJX (which also owns Marshall's and HomeGoods) violated credit card provider Visa's data retention policies for retailers by keeping credit card information on TJX's servers.  The servers that were compromised in the attack two weeks ago contained portions of this data, some of it reportedly going back as far as 2003. 

TJX reported a charge against it's 4th quarter earnings of US $4.5 million related to investigating and containing the attack as well as improving security.  However, many in the industry fear this is just the beginning, as this most recent news could open TJX up to class action lawsuits from affected customers.

TJX keeps data on its servers related to the card expiration date, account number, and card identification code.  As a result, TJX maintains that no personally identifiable information was compromised.  However, this information is sufficient for a Bad Guy to create a fake credit card and run up fraudulent charges.  More than 60 banks in Massachusetts have reported compromises of customer accounts as a result of the security breach, and additional reports are expected.

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