[ISN] Security breach cost Heartland $12.6 million so far

From: InfoSec News <alerts_at_private>
Date: Fri, 8 May 2009 04:01:30 -0500 (CDT)

By Ellen Messmer 
Network World 

Heartland Payment Systems today reported that the security breach it 
disclosed earlier this year has cost the company about $12.6 million so 
far, including legal costs and fines from MasterCard and Visa, which 
directly contributed to a $2.5 million loss for the quarter.

Heartland also detailed plans to protect its credit- and debit-card 
processing network with an end-to-end encryption system that it will 
begin rolling out with its merchants in the third quarter. 

“We are in a cybercrime arms race,” said Bob Carr, Heartland’s chair and 
CEO, in explaining why Heartland intends to deploy the custom-built 
encryption equipment. 

During the company’s financial earnings call, Carr and other Heartland 
executives acknowledged the breach is proving a heavy financial burden 
and that there’s no estimated total cost. 


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Received on Fri May 08 2009 - 02:01:30 PDT

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