Target Breach Leads To Lawsuit, Compelling Pitch For VARs
By The Business Solutions Network
On Thursday, Target announced that it has agreed to pay $10 million dollars in settlement of a class-action lawsuit that came about after its 2013 breach. Individual victims could get up to $10,000 each. I’m not sure what this will do to Target’s bottom line, but I do know that most small retailers couldn't afford such a blow. If a payment data breach occurs and the retailer faces fines and potential lawsuits, you can rest assured that they’ll be coming after those who recommended the POS and payment solutions they use.
A recent article I wrote included some data on EMV adoption up to this point in the United States. It also included some feedback that indicated that small retailers might not be concerned with the EMV liability shift because they don’t think the risk is significant enough to warrant the IT spend. The Target lawsuit should be eye-opening to retailers and a strong data point in your payment security conversations with them. The fines and lawsuits can destroy a business and shouldn’t be overlooked.
Sure Target is a large chain and therefore is a big target (excuse the pun) for criminals. However, small retailers aren’t immune. Check out this PCI-related video the RSPA created a few years ago. In it, restaurateur Carla Yarbrough recounts how she was hacked. In the end, she says she spent about $120,000 to hire a forensic investigator, and pay attorney’s fees and fines to Visa and Mastercard. This is a small restaurant in Brunswick, GA. Or should I say, was a small restaurant. Today, her restaurant is closed.
Will your small retailer customer be next? There’s no guarantee, so make payments security your priority and that of your customers.