Target Throws $10 Million Settlement Offer On Table For Customers Affected By 2013 Credit Card Breach

Target has reportedly reached a settlement agreement in which it will pony up $10 million as compensation to victims of a massive security breach in 2013. The proposed settlement has to be approved by a federal district court judge, and if it is, individual victims of the data breach could receive up to $10,000 in damages, court documents revealed.

Account information for some 40 million credit and debit cards were potentially compromised during the security breach, which occurred between November 27 and December 15, 2013. It was one of the largest of its kind. Hackers are believed to have stolen data containing customer names, credit and debit card numbers, expiration dates, and even the CVV (three digit security code) number on the back of cards.

Target Checkout

Hackers installed malware that affected Target's point-of-sale payment terminals. It spread like wildfire to nearly all of the chain's 1,797 stores, resulting in over a dozen lawsuits by the end of 2013. The breach was so severe that even the Department of Justice launched an investigation into the attack.

What makes the situation even worse is that Target's security supposedly detected the malware used in the hack as early as November 30th, a few days before the cyber thieves were able to steal any data. After the malware was flagged, it was forwarded to a security center in Minneapolis, where the issue was dropped, according to a Bloomberg report in March of last year. If true, then human error was at fault for a situation that could have been prevented.

A court hearing for the proposed settlement is scheduled for Thursday in St. Paul, Minnesota.