Target Spends $148 Million after the Hack

Target Spends $148 Million after the Hack

August 19, 2014         Written By Lynn Oldshue

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.

The information contained within this article was accurate as of August 19, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
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