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Security Incidents : Massachusetts Attorney General investigates the T.J. Maxx, Marshalls security breach!
Posted by Max on 2007/2/8 9:15:15 (1048 reads)
Security Incidents

The Massachusetts Attorney General is heading up a group of more than 30 states trying to get some answers to how the massive T.J. Maxx, Marshalls, Homegoods, and A.J. Wright data breach actually happened.

Recently, Rhode Island announced that it was pursuing its own investigation of TJX.

The Rhode Island probe will continue, and Rhode Island is not—at this time—participating in the multi-state effort led by Massachusetts, said Michael Healy, the public information officer for Rhode Island Attorney General Patrick C. Lynch.


Healy added that the first meeting between Rhode Island prosecutors and TJX has been delayed two days—from Feb. 12 to Feb. 14—because TJX officials declared they needed more time.

The one month delay before public disclosure is a key issue in the Massachusetts probe. TJX has also said that the data problem began in mid-May and hadn't been exposed until mid-December, which is also something the Massachusetts group will likely examine. The $16 billion global retail chain owns T.J. Maxx and Marshall's, among other brands.

Coakley insisted that her multi-state probe will not be limited to credit- and debit-card transactions, but will look at a wide range of "paperless transactions of financial information," including TJX's retention of driver's license information required to handle in-store receipt-less product returns.

A concern that these multi-state data breach probes often insist is how to compensate consumers' efforts to protect themselves.

TJX, for example, has opted to not pay for credit bureau checks for consumers, arguing that such efforts wouldn't be productive in protecting consumers.

One area that Rhode Island is exploring is whether retailers should pay for professionals to clean up the accounts of consumers, so consumers do not have to spend hours listening to hold music to clean up a mistake that was someone else's fault.

Coakley said that Massachusetts and the other states are also actively considering such options.

"It's the whole issue of who pays for the burden" in terms of both cost and time and the "inconvenience." She added: "The states recognize that the time has now come to take a look at this."

Source




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