T.J. Maxx owner pays $9.75 million, settles with 41 states over massive data breaches
Filed under: Shopping, Technology, Identity Theft
Massachusetts-based TJX Cos. reached an agreement with 41 states attorneys general over data breaches that could have released as many as 100 million credit and debit card numbers collecting from customers.Using stolen card numbers allows thieves to steal identities and make fraudulent transactions.
Under the settlement, TJX has agreed to pay a total of $9.75 million. The money will:
- Provide $2.5 million to establish a new data security fund for the states,
- Pay a $5.5 million settlement along with $1.75 million to cover expenses related to the states' investigations;
- Certify that TJX's computer system meets detailed data security requirements,
- Encourage the development of new technologies to address vulnerabilities in the payment card system.
"Safeguarding personal information isn't just good business, it's crucial for our economy," Washington state Attorney General Rob McKenna said.
The company -- owner of T.J. Maxx, Marshalls, HomeGoods and A.J. Wright -- announced the breaches in January 2007 and said they happened in 2005 and 2006. TJX said 11 people accused of participating in the data thefts have been indicted -- with a total of four pleading guilty to varying charges.
CVS Caremark also agreed to a settlement today with the Federal Trade Commission after that company was accused of carelessly dumping private records -- from medical information to Social Security numbers to payroll information -- in trash receptacles instead of destroying them. The FTC said the company did not have a reasonable program in place to dispose of such records and deceived consumers with such claims as "CVS/pharmacy wants you to know that nothing is more central to our operations than maintaining the privacy of your health information."
CVS agreed to pay $2.25 million to settle the case.
States participating in the TJX agreement agreement include: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wisconsin.
Reader Comments (Page 1 of 3)
6-23-2009 @ 2:53PM
angela said...
That's it? 9.75 mil ....My account was compromised 2 times by TJ Maxx after they knew they had a problem. Also, a month ago my bank canceled my card and reissued another card because that card had been compromised....funny thing is they wouldn't say what business but it is interesting that I had recently used my card at a TJ Maxx store and even commented to cashier that I had not shopped there in a couple of years because of what had happened. Does anyone know how I can find out where my card was compromised?
Reply
6-23-2009 @ 5:28PM
tom said...
Oh, I think TJMax/Citibank "gave" those compromised a one year credit watch; then the credit watch company comes after you constantly asking you to upgrade; all abig racket. I do agree with those who complain the their customers really end up on the short end of the stick.
6-23-2009 @ 6:29PM
j c said...
I'd also like to know how to find out if my card has been compromised by T. J. Maxx as I was a frequent shopper there when my card was used in S. America.
6-23-2009 @ 8:07PM
millie said...
hi,i had the same problem,but my bank gave me all the info as to who had done it also a phone number so i could call the people myself...ask your bank for the info you need .good luck
6-24-2009 @ 9:22AM
MICHELLE said...
I have never shopped at TJ MAX and my card was comprimised shopping at A.J. Wright. Apparently the are the same company.
6-23-2009 @ 2:50PM
Shelby said...
Interesting...I received a letter from TJ's several years ago informing me that my credit card had been compromised. Several months later, upon checking out, I asked the cashier if all of the problems had been solved and she was totally clueless...and my state (commonwealth) isn't even listed in the above report!
Reply
6-24-2009 @ 6:13AM
Jenny said...
I'm a single mother with three kids, and I was not pulling in enough income to support us. Now all that has changed. I am now making more money than I have ever dreamed. I've seen articles from other companies promising success in internet businesses before, and I tried some of them because I had nothing to lose. But, they never came close to the success Google http://bit.ly/GoogleProfits have given me. It took me from a $24,000 yearly income job to making over $150,000 within 9 months. Money is coming in my google account everyday and I am loving it.
6-23-2009 @ 2:56PM
Bill said...
I am so sick of these petty lawyers. Where do they think this money comes from? It does not fall out of trees nor is there a bucket of cash at the end of the rainbow. We, the consumer pay for it when we make a product or process service!! And they are getting their pockets lined with cash. True, some may have had their info breached but I failed to find where anyone lost anything of value. These lawyers are a smut on our society and need to be reined in.
Reply
6-23-2009 @ 3:37PM
Suzy said...
So what does the poor consumer get?
Reply
6-23-2009 @ 3:51PM
Denise said...
The consumer gets shafted yet again! The little guy always ends up at the bottom of the pile-while the big wigs get bonuses for their screw ups and somehow make it seem like its all OUR faults that things like this happen! Go figure...
6-23-2009 @ 3:55PM
joey said...
What a bunch of bitching from people who don't have the money to be out shopping in the first place!!! If you REALLY need that $19.99 piece of crap from TJ Maxx PAY CASH!!!! That way you won't have to worry about any identity theft!!!!
Reply
6-23-2009 @ 5:27PM
Paula said...
Did it occur to youthat they were using debit cards? Our DEBIT card was compromised, not a credit card.
6-23-2009 @ 6:13PM
Jason said...
Dumb ass most of the accounts that got compromised are peoples Checking and savings accounts. (Debit Cards) So they did pay cash you uneducated asshole.
6-23-2009 @ 5:39PM
Medic said...
It was not only credit cards that were compromised, it was also the debit card accounts. If you don't already know it, your bank account can be affected by criminals as well.
6-23-2009 @ 8:11PM
nessa said...
Your statement is not accurate. Some people do pay off their credit cards monthly. TJMax, Marshalls, HomeGoods have great merchandise at tremendous savings. It's using your money wisely. You should check it out sometime before making such a statement.
6-23-2009 @ 8:28PM
meryl said...
in todays economy people do use debit cards not just credit cards so you are one big loser to make an assumption that people are using just credit cards!!!!
6-23-2009 @ 4:02PM
gd said...
Lawyers get $. I'll wager judges got contributions to their campaigns, TJ Maxx get a wrist slap and the consumers, well the consumers are gettin screwed but they ain't gettin kissed (with apologies to Hank Jr.)
Reply
6-23-2009 @ 4:07PM
Grumpy said...
Ok, I get it. All the people who were not affected by the data breach get money. The people whose information was released and have or will suffer the effects get nothing! Makes sense to me. I believe it's time that all of us whose information is collected/stored/bought/sold etc. should demand payment. It is our information, we create it, if you wish to go so far it could be classed as "intellectual property". If the data is allowed to enter the public domain without our permission, then whatever company is liable will pay each and every one of us a "penalty", plus costs incurred by any individual whose personal information is used by anyone else.Take the lawyers, states et al out of it. It's time folks.
Reply
6-23-2009 @ 5:38PM
Clint said...
I recently received a notice from WA state saying that their building codes division computers were compromised and my info might have been released to the public. I have a J-card from them. All I was told was "sorry" and to check my credit report sometime....B.S.
6-23-2009 @ 7:36PM
Jen said...
I second Grumpy's motion.