The 2013 data breach at Target left 40 million people exposed to credit card fraud and left the company with a class action lawsuit on its hands. The retailer is now proposing to dish out up to $10,000 per person in damages to settle the lawsuit. A total of $10 million is being offered and those who can prove they were damaged by the data breach will be the first to get their share.
After the first wave of claims are paid, the remaining funds will be evenly distributed among those who do not have documentation of damages. The company will also be required to designate a chief information security officer and provide security training for its employees.
Target’s settlement shows that the effects of a data breach do not end once you contain the threat. There is a long-term recovery process that involves saving the company’s reputation and increasing security measures. Here are a few things to remember if you are recovering from a data breach at your company:
- The impact of a data breach can be loss of trust, leading to loss of business and ultimately a threat to future viability.
- The best way to recover is through transparency, open communication and genuine effort to improve the security of sensitive data in the future.
- More or better employee training, procedural controls, and monitoring efforts may be necessary.
For more information on data breaches and how you can prepare for one, visit the Knowledge Center of your portal or contact your Client Services representative.
2015 Content Intern