Retailers Battle Persistent Data Security Lapses

Retailers just can't seem to put the scandal over safeguarding customer data behind them.

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WWD Year In Fashion issue 2007/12/11
Meanwhile, the fallout from the TJX breach continues to reverberate. Banks suing the chain to recover card replacement and other costs allege the number of records compromised could be double what TJX claims, or about 94 million. TJX, which sticks by its original estimate of 45.7 million customer records, reached a settlement with Visa and Fifth Third Bancorp late last month for up to $40.9 million.

But even more serious than fines and legal liability is the risk of losing customers. "It's not good for business," said Russo. "You have no tangible way of knowing how many of your customers will not shop with you anymore. What [a break-in] does to your brand is immeasurable. Now you have to plan for security in this business. If you don't, you could literally go out of business."
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