TJ Maxx: Pays Millions for Poor Cyber Security

This was written by Brynn Koeppen on Wednesday, June 24, 2009, 16:59.

T.J. Maxx dished out a $9.75 million settlement to states  where tens of millions credit and debit card numbers were exposed by cyber thieves over 2005/2006. The security breach affected over $45 million credit and debit card holders in 41 states beginning in July of 2005, but was not discovered until December 2006. 

Last year TJ Maxx offered $24 million to customers who believed their credit and debit cards were compromised and implemented a ‘customer appreciation’ %15 discount day last January during TJ Maxx’s legal proceedings. 

The settlement clears TJ Maxx of any wrong doing and TJ Maxx and its affiliates have now committed to leading investment in innovative  cyber security technologies. TJ Maxx must make sure its computer systems meet all data security standards in the 41-effected  states. 

After the settlement announcement TJ Maxx said, “The decision to enter into this settlement reflects TJX’s desire to concentrate on its core business without distraction and to promote cybersecurity measures that will benefit all consumers.” 

The credit card breech was apart of an international ring of cyber criminals which also attacked other US and International companies. TJ Maxx aided federal law enforcement agents in cracking down on the international operation, with 11 indictments so far. Two cyber criminals have already plead guilty.

TJX runs 882 of its namesake stores, 811 Marshalls, 322 HomeGoods and 141 A.J. Wright stores in the U.S. It has 203 Winners, 75 HomeSense and 3 Stylesense stores in Canada and 242 T.K. Maxx and 8 HomeSense stores in Europe.