Unsecured WiFi costs TJX 9.75 million dollars in settlements
About two and half years after the TJX debacle shook the retail industry, TJX reached a settlement with 41 US states that cost it $9.75 million. This is only part of the cost TJX is paying for ignoring its WiFi security. According to Reuters, the company is said to have set aside reserve fund of $107 million to cover losses. As a part of the settlement, TJX has agreed to meet “contemporary standards” of data security which includes upgrading its WiFi security.
This unprecedented security breach and the aftermath have, once again, brought to light the risks from unsecured WiFi networks. The PCI Security Standards Council responded well with new wireless security requirements in version 1.2 of its Data Security Standard (PCI DSS 1.2) . The intent is there. Let’s hope that the PCI guidelines get transfered from paper into practice and history does not repeat itself!
Is 9.75 million really considered to be a large sum of money for a company this size? Seems like PCI should have fined them more.