Heartland's Q2 Shows Effects of Breach

Heartland's Q2 Shows Effects of Breach

Posted by John B. Frank Tuesday, August 4, 2009

Heartland swings to Q2 net loss as cost of data breach mounts

Last year's data breach (Editor's Note: Technically it was this year, since they announced during Obama's inauguration last January) at Heartland Payment Systems continues to prove costly, with the vendor incurring related pre-tax expenses of $19.4 million in the second quarter, contributing to a net loss for the three months.

The $19.4 million in various expenses, accruals and reserves comes on top of $12.6 million in costs in the first quarter attributable to the massive data breach, which saw malicious software in the firm's processing system potentially compromising the card data of millions of people.

Of the $32 million for the six months, $22.1 million, relates to fines imposed by the card brands in April 2009 against the company and its sponsor banks and a settlement offer made.

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