Credit card data breach estimated to cost Target $3.6 billion
As we previously reported, if you shopped at any Target store on Black Friday or the 18 days following, you may have been a victim of the security breach that affected 40 million customers.
Since the incident was reported and announced to the public, Target’s CEO released an open letter expressing his apologies, as well as the support they are providing to everyone whose card was compromised. Target has also offered extra discounts to all shoppers in hopes of luring them into the stores during the holiday shopping season.
It is now being revealed that Target could face hefty fines for the security breach including a $90 fine for each cardholder’s data compromised, to the tune of $3.6 billion in liability, not including the lawsuits that have begun to roll in.
While many are blaming Target for the mishap, the old-fashioned magnetic strips on the back of our cards makes credit card fraud one of the easiest jobs for hackers and crooks. Europe and other parts of the world have used data-encrypted microchips for years, but the U.S. has lagged behind in this technology, making it a haven for black market hackers. Encrypted microchips are not a cure-all, but it could go a long way in protecting consumers. How many more major hacking scandals have to take place before changes are made to protect people’s hard-earned money from criminals?