Target and Visa settled the 2013 Christmas season data breach issue by a $67 million deal while possible victims might be paid up to $10 million, based on reports.
Visa Inc. and Target Corp. confirmed the settlement last Tuesday, SFGate reported. According to the site, the payment amount was kept hidden under the wraps until a person involved between the companies' deal revealed that the exact amount was $67 million.
The official settlement amount is yet to be announced by Target or Visa's representative.
The data breaching incident, which occurred 2 years ago, affected 40 million debit and credit card account holders. The computer hackers were able to obtain personal information including names and addresses of up to 70 million individuals. Hence, the possible victims of identity theft.
After Target's announcement, which was made on Dec.19, 2013 regarding the data breach affected their sales, shoppers avoided the company for the fear of their own identity security.
As a result, Target reportedly reorganized their security and technology department while redesigning their cash registers in 1,800 branches. Aside from that, the use of Chip Cards were suggested as well. The latter could be safer for both the company and its buyers suggesting that it is almost impossible to copy. The company is ensuring its customers that something like this would not happen again.
Meanwhile, aside from the $67 million deal, ITBusinessNet also reported that Target is about to pay an additional $10 million to the proven identity theft victims.
However, Lawyer Charles Zimmerman said that the $67 million deal was just "a new attempt" of Target to avoid reimbursements to the card issuers, according to TribLive. Together with his group who handled the case against the retailer, they filed for a "class-action status" that is scheduled for a hearing on Sept. 10.
Target's shares rose up to 1.7 percent shortly after the deal was made while Visa's shares increased by 6 cents.
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