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Studies indicate data breaches don't necessarily mean 'end of life' for companies

posted onMarch 27, 2012
by l33tdawg

Three years ago one of the largest payment processors in the country reported that hackers had accessed its computer system, exposing millions of credit card numbers in what is believed to be the largest hacking-related security breach ever.

Heartland Payment Systems' CEO said at the time that the breach had occurred in 2008, but had only been discovered in January 2009. According to the DataLossDB site, the Heartland breach involved 130 million credit and debit card numbers. The company was sued by shareholders, but the suit was dismissed. Meanwhile, after pleading guilty to that hack as well as a slew of others, former government informant Albert Gonzalez is serving a 20-years prison sentence.

Heartland has not only survived since the breach, it has thrived. It's stock price dropped from about $17 a share to under $5 after the breach, but has climbed to just under $30. Revenue has increased during that time by about 30 percent and profit margins are at pre-breach levels, although the company paid an estimated $68 million in costs to settle consumer and credit card claims.

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