Banks sue over TK Maxx data breach

A group of banks has filed a class action lawsuit seeking tens of millions of dollars in compensation from TJX, parent company of UK discount retailer TK Maxx, after the massive data theft disclosed by the firm in January.

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A group of banks has filed a class action lawsuit seeking tens of millions of dollars in compensation from TJX, parent company of UK discount retailer TK Maxx, after the massive data theft disclosed by the firm in January.

Details of 45.6m payment cards were stolen from TJX in the world’s biggest ever data theft. The stolen information included card details for an unknown number of UK customers taken from the retailer’s computer systems in Watford, Hertfordshire.

A US coalition, the Massachusetts Bankers Association (MBA), is now seeking compensation after being forced to stop and reissue thousands of debit cards after the data security breach.

The MBA said banks in the state of Massachusetts, along with those in California, were among the financial institutions hardest hit by the data breach.

“There have been dramatic costs to financial institutions in the effort to protect cardholders," the MBA said . "The MBA is filing this lawsuit to protect customer privacy and data security for customer accounts."

According to the bankers’ association, a final estimate of the costs from the breach is still not available because banks are still receiving lists of cards that have been compromised.

"Suffice to say, we will be seeking to recover damages in the tens of millions of dollars." MBA president Daniel Forte said.

TJX is also facing other legal threats in the US and Canada.

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