Heartland breach cost $12.6 million, CEO says
Heartland Payment Systems Inc. said it was experiencing losses this quarter as a direct result of a massive data breach it disclosed in January when investigators discovered a malicious program sniffing credit card data passing through its systems.
The company said it took a $2.5 million loss for the quarter as a result of spending more than $12.6 million in legal bills, fines from MasterCard and Visa and administrative costs.
The announcement was made during the company’s financial earnings call, where Carr said the costs associated with the breach could continue to climb.
“Our defense of the claims regarding the processing system intrusion remains ongoing,” he said. “Much of the legal work remains to be done and it is difficult to anticipate when these matters will come to a conclusion.”