14 DAY TRIAL // Target has reached a settlement with the Attorneys General of 47 states regarding the data breach it suffered in 2013, agreeing to pay a mere $18.5 million.
The Attorneys General who led the investigation - for Illinois and Connecticut - will determine how much each state will receive. The money will be used for various purposes, like covering attorney fees and investigation costs.
The settlement also states that Target will implement an information security program, as the company has promised to take both administrative and technical measures to properly secure its systems and customer data.
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The company will also have to make sure it separates card data from the rest of the network, so it is kept safe in case of another data breach. It also has to implement two-factor authentication, run proper encryption policies, and so on.
Furthermore, the company has to hire a third-party to conduct a cyber security assessment. The company also has to make sure it properly vets the vendors to ensure they comply with its information security program, especially since the 2013 data breach happened after cybercriminals gained access to its systems via an HVAC contractor.
Back in 2013, Target was the victim of a data breach where about 70 million payment cards were compromised, alongside the personal data of about 110 million customers.
Target has estimated that the breach cost it $290 million thus far, including payments made to Visa card issuers, banks and credit unions, MasterCard card issuers, and affected consumers.
With this most recent settlement, it seems that Target is closer to finally finish dealing with the aftermath of this security breach.
Over the years, there have been numerous security breaches and all companies have had to pay quite a lot of money to compensate for the lack of security. Perhaps seeing how much Target has paid will push other companies to better secure their networks so they don't have to face the same scenario.