Page 23 - AUA BANK MAY 25

TECHNOLOGY A23
Monday 25 May 2015

Target settlement with MasterCard fails to get bank support

BREE FOWLER cent of the issuers to ac- confirmed that it had been push for “proper compen- curity of their private data.
AP Technology Writer cept the offer in order for it notified by MasterCard of sation” for their clients. That hurt profits and sales
NEW YORK (AP) — A $19 to go into effect. the development and de- The National Association of for months.
million deal between Tar- MasterCard Inc. would clined further comment. Federal Credit Unions also The breach also pushed
get and MasterCard to only say Friday that not Lawyers for banks that had on Friday issued a state- banks, retailers and card
settle lawsuits stemming enough issuers approved sued Target over breach- ment calling for full com- companies to increase
from the retailer’s mas- security by speeding the
sive pre-Christmas 2013 This January, 2015 file photo shows a window decal indicating that MasterCard is accepted at a adoption of microchips in
data breach has been U.S. credit and debit cards.
scrapped, because it New York business. Associated Press Supporters say chip cards
failed to get enough sup- are safer, because unlike
port from the affected the deal. It would not re- related losses called the pensation for its affected magnetic strip cards that
banks and credit unions. veal exactly how close settlement an attempt members. transfer a credit card num-
While the rejection sends it got to the 90 percent by Target to “extinguish Target disclosed the mas- ber when they are swiped
the companies back to threshold. pending legal claims for sive breach on Dec. 19, at a point-of-sale terminal,
the drawing board, ad- “At this stage, we will con- pennies-on-the-dollar.” 2013 during the peak of chip cards use a one-time
vocates for the financial tinue to work to resolve Lead attorneys Charles the holiday shopping sea- code that moves between
institutions said they were the matter,” the company Zimmerman and Karl Cam- son. The disclosure rattled the chip and the retailer’s
pleased, claiming that the said in a statement. bronne said in a statement shoppers who avoided the register. The result is a trans-
settlement would have Minneapolis-based Target that they will continue to retailer, fearing for the se- fer of data that is useless to
provided compensation anyone except the parties
for just a fraction of the involved. Chip cards are
losses. also nearly impossible to
Under the settlement an- copy, experts say. Target
nounced last month, Tar- overhauled some of its di-
get Corp. agreed to set visions that handle security
aside $19 million for banks and technology. The com-
and credit unions that had pany has also been up-
issued MasterCards swept grading its cash registers
up in the breach that so they can accept chip
compromised 40 million cards in its nearly 1,800
credit and debit card ac- stores. The breach was
counts between Nov. 27 also a major factor behind
and Dec. 15, 2013. the abrupt departure of its
Banks and credit unions CEO Gregg Steinhafel in
would have been able to May 2014.
use the money to cover Target shares rose 2 cents
operating costs and fraud- to $79.41 in afternoon
related losses stemming trading, while MasterCard
from the breach. But the shares rose 8 cents to
settlement needed 90 per- $92.98.q