Target Paying Millions Back to Banks over Data Breach

AP Photo/Rick Bowmer
AP Photo/Rick Bowmer

Reuters reports that Target is paying banks and credit unions back for fraudulent charges and costs related to reissue of debit and credit cards, regarding the company’s 2013 data breach.

Just before Christmas 2013, Target revealed that it had been breached to the tune of 70 million customers’ names, addresses, and e-mails, along with another 40 million credit cards that were compromised. Nearly a quarter of the U.S. population was affected by the disaster, and Target Inc. is still struggling to move on.

The settlement will require Target to make amends with affected banks and credit unions, along with MasterCard issuers, to the tune of $20.25 and $19.11 million, respectively. Visa received $67 million in damages, but the primary victims — the consumers themselves — trail far behind with a $10 million settlement.

Target has invested at least $290 million to repair the breach of data and consumer trust thus far, but expects that insurance will cover about $90 million. The company has also become one of the first to implement microchip-based card readers in all locations.

While the company still faces multiple shareholder lawsuits, the company is “pleased that the process is continuing to move forward,” according to spokeswoman Molly Snyder.

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