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Retailer settles data breach case with Pa., 40 other states

| Monday, July 27, 2009

Pennsylvania and 40 other states reached a $9.75 million settlement with the owner of the T.J. Maxx and Marshalls discount stores over a massive security breach that compromised consumers' accounts, state Attorney General Tom Corbett said today.

"Every time someone swiped a credit card or debit card" at a store operated by TJX Companies Inc., Corbett said. "their information was funneled directly to hackers, compromising the accounts of millions of consumers."

He called the computer security breach the largest ever reported. The settlement resolves allegations that TJX ignored flaws in its computer network and failed to take sufficient steps to protect customer information. The breach left the company's network vulnerable to hackers for more than a year, Corbett said.

Pennsylvania's portion of the settlement is $450,000 for consumer protection and education. A $2.5 million national fund will be created to investigate future data security breaches.

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