CASE STUDY 9

SECTION C (1:00 - 2:00 PM MWF)

Members:
Ablir, Roselle
Amorin, Clint Joy
Esturas, Erica
Navaja, Marjorie

1. What are the costs involved in the TJX network breach?

Network breach takes place when hackers enter the network and steals data. The hackers
can access wide range of financial information, credit card and debit card information and
make fraudulent buying from stolen cards. The TJX is the leading off-price apparel and
retailer in home fashion all over the world. TJX discovered a hacker had illegally
accessed the network which handles check, credit card, return transactions and debit card.
There was stealing of debit card and credit card numbers. When the network breach was
discovered the areas of network breach was closed. Enforcement of laws with security of
external experts was called to investigate and assess the breach to prevent it in future. The
costs which are involved in TJX network breach are as follows:
 Costs to correct the security hole by hiring investigation officers
 Costs to hire expert professional in software and online fraud detectors
 Costs to notify customers and clients
 Costs to search the hackers and take action against them

2. As this investigation unfolds, research the additional cost or loss of revenue to TJX
and the credit card companies involved.
The costs or loss of revenue to TJX and the credit card companies involved soars to
$256 million and stole more than 45 million customer credit and debit card numbers.
The credit card companies involved are T.J Maxx, Marshalls, Home Goods and Sierra
Trading. The hacker had access from a time in July 2005 to mid-December 2006.
Along with credit and debit card numbers that were stolen, some driver’s license
numbers with names and addresses were compromised.

3. What should TJX have done to prevent this breach from occurring? Could they have
stopped it?

Breaches like TJX are more common with today’s increased e-commerce and e-
Business. Networks, servers, and services are constantly being stressed to look for
weak links. Information technology security systems are in need of constant scrutiny
by companies engaged in storing of personal information. In the TJX case, the costs
involved in correcting the security hole and the ongoing investigation, along with
notifying consumers, may also see a loss of sales revenue. They could have stopped it
if their security was tight and monitors the system frequently.