2.4 Customer Records
Target, the major retailer, was hacked on Black Friday in 2013. Over 40 million debit card accounts were scooped up. The data was not encrypted. Groups of Target customers filed suit claiming that “Target failed to implement and maintain reasonable security procedures and practices.” Roll forward to 2015 when Target paid out $10 million to customers as a result of lawsuits. This $10 million does not include costs to notify, legal costs, loss of good will among existing customers, and the effect on Target’s reputation in the marketplace.