Target breach costs retailer $162 million
Retailer Target’s latest financial report shows that breach-related expenses not covered by insurance have come to $162m in 2013 and 2014.
In the report, the company said it incurred breach-related expenses of $4m in the fourth quarter of 2014 and full-year net expense of $145m.
Fourth quarter and full-year 2013 costs related to the breach were $17m.
President and co-founder of cloud control company HyTrust Eric Chiu said: “The major breaches such as Target, Sony and Anthem damage brand reputation and consumer trust, but they also have a real impact on the bottom line.”
He also added that the $162m spent so far by Target is “just a drop in the bucket” due to class action lawsuits by consumers and the recent court ruling that banks can go after Target to reclaim their losses.
Chiu also said that the breach could eventually end up costing the retailer more than $1bn.