Heartland Payment Systems to pay $5m to settle data breach

3 September 2010

Financial technology provider Heartland Payment Systems has agreed to pay Discover $5 million to settle claims over a data breach from 2008.

The firm revealed in January of last year that hackers had breached its payment systems in an incident which took place two years ago and subsequently stole confidential details belonging to customers and clients.

According to reports, the payments firm set aside $140 million to cover the cost of damages paid out to firms whose data had been compromised.

In a statement, Heartlands explained that the $5 million was the final payment to be made and would resolve “all issues related to the 2008 intrusion”.

Bob Carr, Heartland's chairman and chief executive officer, said: “We are pleased to have reached an equitable settlement with Discover.

"This settlement marks our final agreement with a card brand related to the intrusion."

Other payments included $59.3 million in to banks issuing Visa cards, $41.4 million to MasterCard Worldwide and an estimated $3.5 million to American Express.

A gang of hackers led by Albert Gonzalez is believed to have been responsible for the crime.

By Jim Ottewill

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