“This is how Target is getting more customers in the stores,” said Brian Sozzi, CEO and Chief Equities Strategist. “It’s telling people to use the card. It’s been a big win. If they lose that trust, that person goes to Wal-Mart.”
TJX Cos., which runs stores such as T.J. Maxx and Marshall’s, had a breach that began in July 2005 and exposed at least 45.7 million credit and debit cards to possible fraud. The breach was not detected until December 2006.
Without anyone noticing, one or more intruders installed code on the discount retailer’s systems to methodically collect and transmit account data from millions of cards.
In 2009, TJX agreed to pay $9.75 million in a settlement with multiple states.
Litan doubts the breach will have much effect on Target’s sales, noting that TJX launched sales promotions immediately following the news of its breach. The effort increased sales.
“People care more about discounts than security,” Litan said.
Associated Press writers Michelle Chapman in New York and Heather Hollingsworth in Kansas City, Mo., contributed to this report.
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