Target Still Doesn’t Know the Full Cost of Its Breach:PaymentsSource

From the SourceMedia joint: 

About a half year after Target suffered a massive data breach, the retailer is still anticipating further financial hits.

“Our outlook does not have additional costs for the data breach. We believe we have the financial strength to move beyond the financial impacts once they are known,” said John Mulligan, Target’s interim president and CEO, during a May 21 conference call to discuss the Minneapolis-based retailer’s first-quarter earnings. The previous president and CEO, Gregg Steinhafel, resigned May 5.

In the first quarter 2014, Target reported $18 million of net expense that was driven in part by the breach, or $26 million of total expenses offset by $8 million in expected insurance reimbursement. These costs do not reflect future claims by payment card networks for fraud losses connected to the breach, and the retailer may not have visibility into those costs until the third quarter. 


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