Mastercard issued Heartland with heavy fine for ‘failure’

Heartland has paid out $12.6 million in costs after it suffered what has been previously described as the largest credit-card breach ever.

Heartland Payment Systems, the US payment processor that suffered a massive security breach leaving customer transactions exposed, lost $12.6 million (8.4 million) in costs directly related to the intrusion.

According to an earnings conference call transcript, chief executive Robert Carr said that more than 50 per cent of the expense related to a fine that Mastercard assessed against Heartland's sponsor banks.

"Obstensibly because of an alleged failure by Heartland to take appropriate action upon having learned that its computer system may have been breached," Carr said.

However, the chief executive claimed that Heartland responded properly to the possibility of a computer breach and took "immediate and extraordinary" action to address the breach.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Carr said that Heartland was going to "vigorously contest" the size of Mastercard's fine.

Heartland found out about the breach in January last year, notifying law enforcement as well as the card brands involved, with the data taken enough to have been used to duplicate cards.

However, there was good news for the beleaguered credit card processor, as earlier this month it returned to Visa's list of PCI DSS compliant service providers after being taken off in March.

Carr suggested that it could be a wake up call for other companies involved in securing card holder data, as Heartland would go beyond' the PCI standard and were on schedule to introduce a fully encrypted end-to-end terminal solution.

Featured Resources

How inkjet can transform your business

Get more out of your business by investing in the right printing technology

Download now

Journey to a modern workplace with Office 365: which tools and when?

A guide to how Office 365 builds a modern workplace

Download now

Modernise and transform your sales organisation

Learn how a modernised sales process can drive your business

Download now

Your guide to managing cloud transformation risk

Realise the benefits. Mitigate the risks

Download now
Advertisement

Recommended

Visit/security/internet-security/354417/avast-and-avg-extensions-pulled-from-chrome
internet security

Avast and AVG extensions pulled from Chrome

19 Dec 2019
Visit/security/354156/google-confirms-android-cameras-can-be-hijacked-to-spy-on-you
Security

Google confirms Android cameras can be hijacked to spy on you

20 Nov 2019
Visit/policy-legislation/33757/us-demands-social-media-details-from-visa-applicants
Policy & legislation

US demands social media details from visa applicants

3 Jun 2019

Most Popular

Visit/cloud/cloud-computing/354767/google-cloud-snaps-up-multi-cloud-analytics-platform-for-26bn
cloud computing

Google Cloud snaps up multi-cloud analytics platform for $2.6bn

13 Feb 2020
Visit/mobile/28299/how-to-use-chromecast-without-wi-fi
Mobile

How to use Chromecast without Wi-Fi

5 Feb 2020
Visit/cloud/microsoft-azure/354771/microsoft-azure-is-a-testament-to-satya-nadellas-strategic-nouse
Microsoft Azure

Microsoft Azure is a testament to Satya Nadella’s strategic nouse

14 Feb 2020
Visit/operating-systems/27717/how-to-fix-a-stuck-windows-10-update
operating systems

How to fix a stuck Windows 10 update

12 Feb 2020