Target to Pay Out $18.5 Million to Close Investigation into 2013 Data Breach

Retail giant Target will reportedly pay $18.5 million to 47 states in order to bring a close to the investigation into their 2013 data breach.

The Consumerist reports that following Target’s massive 2013 data breach, the company has reached an agreement to pay out $18.5 million to close the investigation into the cyber attack across 47 states. The investigation which began in November 2013 was lead by the attorneys general for Illinois and Connecticut.

The 2013 data breach began when Target’s credit card payment system was infiltrated using credentials stolen from a third-party heating and air-conditioning contractor. This resulted in more than 41 million Target shoppers having their credit card information stolen. Many customers used multiple cards to make payments which put the total number of compromised accounts above 60 million.

The $18.5 million settlement is to be divided between the many states participating in the action against the retailer. Target has also agreed to develop and maintain a comprehensive information security program with a single Target executive tasked with overseeing the entire operation. This security program will also be subject to review by an independent third party.

“Today’s settlement with Target establishes industry standards for companies that process payment cards and maintain secure information about their customers,” said Illinois Attorney General Lisa Madigan. “People must remain vigilant about activity on their credit and debit cards as it’s not a matter of if but when you are going to be a victim of identity theft or a security breach.”