February 21, 2007

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  UPDATE: TJX Slammed With Suit After Breach

  The security breach of a customer-information database including debit and credit card number at New England-based TJX Cos., parent company of such discount store chains as Marshall's and HomeSense, made national news at the start of last week. Although it occurred a hairbreadth away (chronologically and proximity-wise) to a similar crisis at several Stop & Shop stores, TJX is facing singular heat from consumers, due to their lack of disclosure about the incident to the press or to the public for almost a month after it allegedly occurred. While Stop & Shop went to great lengths to publicize known facts about the hacking –which, in turn, gave consumers time and resources with which to arm themselves against potential resultant fraud- TJX kept mum.

  
  Hence, the class action negligence suit filed against the company in US District Court in Boston, on behalf of a West Virginia woman whose debit card number was among those numbering in the hundreds of thousands, or even millions, stolen from the database. The suit seeks damages and credit monitoring services provided by TJX, who had originally stated that they would provide the latter to all affected customers, but withdrew the offer shortly thereafter.

  
  TJX chairman Ben Cammarata took out full-page ads in several New England newspapers this weekend, defending the "delay of a public announcement" of the breach as time for the company to contain the damage, and also reassuring customers that it was safe to shop at the 2,500 stores that make up the four chains under the company's parentage. He reiterated the message in a seven-minute video posted on the company's website. Consumers and industry critics dismissed the salvos as too little, too late. To date, TJX has still refused to state how many customers have been affected by the breach, although the Massachusetts Bankers Association has already reported card replacements due to fraud related to the issue as being spread as far away as Hong Kong.
  
  
  To read the original story about the TJX breach when it occurred, click here.

  
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