Target Will Pay $18.5 Million to 46 States to Close Investigations into 2013 Data Breach, NC to Receive $390,814

The 2013 data breach affected more than 41 million customer card accounts and contact information for more than 60 million Target customers

Target Will Pay $18.5 Million to 46 States to Close Investigations into 2013 Data Breach, NC to Receive $390,814
Image: NCCC
May 25, 2017

North Carolina Attorney General (AG) Josh Stein announced this week that the state has joined 46 other states and the District of Columbia in a settlement with Target Corporation over a 2013 data breach. The $18.5 million agreement is the largest multistate data breach settlement to date. North Carolina will receive $390,814.

Stein says that the states' investigation found that cyber attackers exploited weaknesses in Target's server to gain access to a customer service database. The database contained sensitive personal information such as names, addresses and bank card numbers.

"Retailers must make the safety of their customers a priority," said AG Stein. "When this type of breach occurs, scam artists can exploit personal data to commit identity fraud and theft. My office will not allow companies to cut corners when it comes to the protection of people's sensitive, personal information."

The 2013 data breach affected more than 41 million customer card accounts and contact information for more than 60 million Target customers.

In addition to the monetary payment, the agreement also requires that Target:

  • Develop, implement and maintain an information security program;
  • Employ an officer responsible for executing the security program;
  • Hire an independent, qualified third-party to conduct a security assessment;
  • Maintain appropriate encryption policies;
  • Segment cardholder data from the rest of the network; and
  • Take steps to control access to its network, such as password rotation and two-step verification policies.

North Carolina is joined in the settlement with Target by the states of Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and the District of Columbia.