Target reaches $67m compensation settlement with Visa for data breach

Visa made the deal on behalf of banks and other card firms and it is one of the largest settlements following a data breach, according to The Wall Street Journal.

As many as 40 million customers had their credit and debit cards exposed to potential fraud in a three-week period in the build up to Christmas 2013 after malware was introduced into point of sale systems at 1,800 Target stores.

The amount of fraud that occurred as a result of the Target breach is unknown, but it is estimated to have cost banks more than $200m (£128m).

Sources said that the settlement is the maximum possible laid out in Visa’s regulations.

Target is also reportedly working with MasterCard on a similar settlement.

Card issuers have taken issue with data hacks on retailers leaving them financially out of pocket and believe reimbursement does not cover the costs associated with issuing new cards and dealing with customer complaints.

Carphone Warehouse hack

The settlement follows on from news last week that a hack that targeted Carphone Warehouse had exposed 2.4 million customers’ details to fraudsters.

The Information Commissioner’s Office has launched an investigation into Carphone Warehouse that could result in a £500,000 fine.