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Target to Settle Data Breach for $10 Million

March 19, 2015
Personal Finance
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Target will pay a reported $10 million into a fund to reimburse victims of a massive 2013 data breach in which hackers stole shoppers’ debit and credit card information.

The fund would settle a class-action lawsuit filed against the nation’s second-largest retailer by victims of the hacking attack, in which the personal information of as many as 40 million customers was compromised.

“We are pleased to see the process moving forward and look forward to its resolution,” Target spokeswoman Molly Snyder told CBS News late Wednesday.

Target did not immediately respond to a message seeking comment for this story.

Under the proposed settlement, individual victims would be paid as much as $10,000 from the account.

CBS News, one of the first outlets to report the settlement, said a court hearing was set for Thursday in St. Paul, Minnesota. Target is headquartered in neighboring Minneapolis. The settlement must be approved by a federal court judge.

During the holiday shopping season of 2013, a network of hackers reportedly installed software on payment terminals in nearly all of Target’s 1,797 stores in the United States.

Security blogger Brian Krebs was first to discover and report the hack to Target. A New York Times article about the process, and the rest of Krebs’ dealings with the Internet’s shady hacker underworld, has been optioned by Sony for a Hollywood movie.

Doug Gross is a staff writer covering personal finance for NerdWallet. Follow him on Twitter@doug_gross and on Google+.

Image via iStock.