Friday, March 30, 2007

  Financial Data Stolen From TJX Now Being Used

Consumer Help Web shared information with readers about a massive data theft earlier this year. The company's president, Joan Bounacos, was quick to point out that this incident, involving TJX, the owners of Marshall's and TJ Maxx stores was different because it was a clear theft, not a "data breach".

"You could simply tell right away that this wasn't a case of a missing laptop, but a sophisticated criminal enterprise," the consumer advocate said in a statement. "There was too much data, over too long a period of time for consumers to be cavalier about this incident."

In a filing with the United States Securities and Exchange Commission yesterday, TJX admitted that the data breach had gone on longer than previously reported and that the company itself took longer to report the incident to the public. Citing multiple thefts going back years, the company spent pages of its filing to provide its version of details related to the theft, calling it a "computer intrusion".

"The most disappointing information in the filing is the attitude the company seems to have," Bounacos said. "While admitting that some evidence exists the data is now being used to steal identifies, the company says it will vigorously defend litigation and claims against it. That might be good for stockholders, but not for the tens of millions of people now at risk."

In February, Consumer Help Web called for TJX, which posted net income last year of more than $700 million, to work with consumers to provide free credit monitoring services after the records were stolen. "A company with $17 billion in revenue is forcing consumers to pay for credit monitoring fees," Bounacos said. "They seem to display an unusually cavalier attitude rather than accepting responsibility for a multi-year, multiple event theft from their company. Consumers shouldn't have to pay for the company's lack of proper technology security."

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