ID Theft Ring Attacked Retailers on Multiple Levels
The U.S. Federal Trade Commission, however, filed complaints against TJX, BJ's Wholesale and DSW, a shoe retail chain targeted by the ID theft ring that reported a data breach in March 2005. DSW reported that more than 1.4 million credit card numbers were compromised, and losses ranged from US$6.5 million to $9.5 million.
As of mid-2005, BJ's reported outstanding claims of $13 million related to the data breach. About 455,000 credit card numbers were taken in the TJX breaches, according to the FTC.
The FTC alleged that the three retailers did not take appropriate security measures to protect against the attacks.
The FTC announced a settlement with BJ's in June 2005 requiring the company to implement a comprehensive information-security program and obtain audits by an independent third-party security professional every other year for 20 years. The agency announced a similar settlements with DSW in December 2005 and TJX in March of this year.
The FTC has not filed complaints against six other companies identified as data breach victims by the DOJ. Those companies are Dave and Buster's, OfficeMax, Barnes & Noble, Boston Market, Sports Authority and Forever 21. An FTC official said she could not comment on possible complaints against those companies because the FTC does not comment on ongoing investigations.
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