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

http://www.networkworld.com/news/2009/050709-heartland-breach-tally.html

By Ellen Messmer 
Network World 
05/07/2009 

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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