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TJX Finds More Payment Card Data Intrusions

MA-based TJX Companies says the 2006 security breach that opened millions of cardholder personal data to outsiders may also have been intruded upon in July 2005 and on various subsequent dates in 2005. TJX also has found additional drivers’ license numbers together with related names and addresses that it believes were recently compromised. This information was associated with unreceipted merchandise returns at its T.J. Maxx, Marshalls, and HomeGoods stores in the U.S. and Puerto Rico for the last four months of 2003 and May and June 2004. In addition to the customer data the Company previously reported as compromised, the Company now believes that information regarding portions of the credit and debit card transactions at its U.S., Puerto Rican and Canadian stores (excluding debit card transactions with cards issued by Canadian banks) from January 2003 through June 2004 was compromised. The Company had previously reported that the 2003 transaction data had potentially been accessed. For most of the transactions from September 2003 through June 2004, some of the card information was masked at the time of the transaction, making that portion unavailable to the intruder. TJX took a charge of approximately $5 million for costs incurred due to the recent security intrusion in the fourth quarter, which includes costs incurred to investigate and contain the intrusion, enhance computer security and systems, and communicate with customers, as well as technical, legal, and other fees. Beyond this charge, TJX does not yet have enough information to reasonably estimate losses it may incur arising from this intrusion, including exposure to credit and debit card companies and banks, exposure in various legal proceedings that are pending or may arise, and related fees and expenses, and other potential liabilities, costs and expenses.