Target Spends $148 Million after the Hack
Target’s massive data breach in December 2013 caused a slew of financial institutions to spend over $200 million enhancing their security protocol and issuing new credit cards to their customers. Reports now indicate Target has spent $148 million in the second quarter of 2014 as a result of the breach.
Target will be reimbursed $38 million from an insurance payout, meaning the store will still be out $110 million from the data breach. This will push the total that all parties have spent from the hack to more than $350 million.
“Expenses for the quarter include an increase to the accrual for estimated probable losses for what the Company believes to be the vast majority of actual and potential breach-related claims, including claims by payment card networks,” Target said in a statement.
The company also said these figures may change if further evidence is brought up for breach-related charges.
The results of Target’s second quarter analysis will be published on August 20th. The company said it is expecting its earnings to be lower than normal and its profit margins to decrease as a result of flat sales.