Target to settle huge data breach for $18.5M

Customers in NM, 46 other states, D.C. struck by attack in 2013

NEW YORK — Target Corp. has reached an $18.5 million settlement over a massive data breach that occurred before Christmas in 2013, New York’s attorney general announced Tuesday.

The agreement involving 47 states — including New Mexico — and the District of Columbia is the largest multistate data breach settlement to date, Attorney General Eric T. Schneiderman’s office said.

New Mexico’s share of the settlement was about $205,000, according to Attorney General Hector Balderas’ office.

Target spokeswoman Jenna Reck said in a statement that the company has been working with state authorities for several years to address claims related to the breach. “We’re pleased to bring this issue to a resolution for everyone involved,” she said.

Target had announced the breach on Dec. 19, 2013, saying it had occurred between Nov. 27 and Dec. 15 of that year.

It affected more than 41 million customer payment-card accounts and exposed contact information for more than 60 million customers. The breach forced Target to overhaul its security system and the company offered free credit reports for potentially affected shoppers.

Target’s sales, profit and stock price all suffered months after the disclosure as shoppers were nervous about the security of their credit cards.

An investigation by the states found that in November 2013, scammers got access to Target’s server through credentials stolen from a third-party vendor. They used those credentials to take advantage of holes in Target’s systems, accessing a customer service database and installing malware that was used to capture data, including full customer names, telephone numbers, email and mailing addresses, credit-card numbers, expiration dates and encrypted debit PINs.

The settlement requires Target to maintain appropriate encryption policies and take other security steps.