Published February 18, 2014
The data breach that compromised 40 million payment cards used by Target (TGT) shoppers has cost banks and credit unions more than $200 million, based on estimates from industry trade groups.
The Consumer Bankers Association said Tuesday its members have incurred a total cost related to card replacements of $172 million, up from an initial projection of $153 million. Meanwhile, the Credit Union National Association believes the cost to its members has increased to $30.6 million.
Members of the trade groups have so far replaced 21.8 million of the 40 million credit and debit cards that were affected.
“Financial institutions of all sizes have been aggressive in ensuring their customers are protected in response to the Target data breach,” said Richard Hunt, president and CEO of the CBA.
Bill Cheney, president and CEO of CUNA, added the combined $200 million cost “shows the extent to which financial institutions will go to protect their customers and members.”
The estimates don’t include any fraud that may occur or has already been reported. Consumers are not held liable for any fraudulent purchases made with their credit or debit cards.
The attack on Target, which also exposed personal data connected to 70 million customers, reportedly began when hackers obtained credentials from a heating and air conditioning contractor that works on the retailer’s stores.
Shares were up 0.8% at $56.51 in recent trading.