Home Depot spent $43 million on data breach in just one quarter

The retailer expects 'significant' ongoing expenses from the breach

Home Depot spent US$43 million in its third quarter dealing with the fallout of one of the largest ever data breaches, highlighting the costly nature of security failures.

The retailer said in a regulatory filing on Tuesday that it expects $15 million of that cost will be reimbursed by a $100 million network security and privacy liability insurance policy.

The $43 million was spent on investigations, providing identity theft protection services to consumers, increased call center staffing and other legal and professional services.

Attackers stole 56 million payment card details and collected 53 million email addresses of people who shopped at Home Depot's stores between April and September in the U.S. and Canada. They gained access to Home Depot's network by using the login credentials of one of the retailer's vendors.

The retailer warned that it expects "to incur significant legal and other professional services expenses associated with the data breach in future periods."

Home Depot is also facing 44 actions filed in courts in the U.S. and Canada. It expects more claims may be filed on behalf of customers, payment card brands, payment card issuing banks and shareholders.

Payment card networks may make claims seeking to recover incremental counterfeit fraud losses and costs for reissuing cards, Home Depot wrote. Its liability will depend on whether it was noncompliant with data security standards, which contributed to the breach.

An independent auditor found that its network which handles payment card data was compliant with data security standards in the fall of 2013, Home Depot wrote. But it was undergoing certification for 2014 when the data breach occurred, it said.

"The forensic investigator working on behalf of the payment card networks may claim the company was not in compliance with those standards at the time of the data breach," Home Depot wrote.

Retailers are required to follow the Payment Card Industry's Data Security Standards (PCI-DSS), which are a set of guidelines for securing card data. If found noncompliant, a business can face liability.

The PCI Security Standards Council has been warning retailers that passing an annual audit may not be sufficient and that compliance monitoring should be an ongoing project. Network changes, it has said, could mean a business can fall out of compliance.

Send news tips and comments to jeremy_kirk@idg.com. Follow me on Twitter: @jeremy_kirk

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags securitydata breachHome Depot

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?