Penalty Amount
$18,500,000
Consumers Affected
41,000,000
Target Corp. agreed to pay $18.5 million to resolve a multi-state investigation into the November 2013 data breach that compromised payment card information of over 41 million shoppers. The settlement requires Target to implement comprehensive cybersecurity reforms, including a dedicated Information Security Program, encryption, network segmentation, and third-party assessments.
Target must pay $18.5 million, establish an Information Security Program led by a dedicated officer, encrypt consumer payment card data, segment its cardholder data environment, ensure vendor compliance with security standards, adopt chip-and-PIN technology, implement password rotation and two-factor authentication, and undergo a third-party Information Security Assessment with reports available to states.
In-house legal teams should prioritize reviewing vendor agreements for clauses governing third-party security controls, credential management, and audit rights, as the breach stemmed from compromised vendor credentials. Customer agreements must be examined for data security warranties, breach notification timelines, and limitations of liability related to payment card information. Key clauses to scrutinize include data security requirements, vendor oversight provisions, encryption standards, network segmentation obligations, and incident response plans. Revisions may be necessary to mandate a dedicated Information Security Program with C-suite accountability, require regular third-party security assessments, enforce encryption and segmentation of stored data, and establish mandatory board-level reporting on cybersecurity risks.
Entity
Target Corp.
Also known as: Target
Industry
Retail"Target Corp."
"Target’s $18.5 million settlement payout"
"The November 2013 cyber-intrusion was carried out by attackers using credentials stolen from a third-party Target vendor. The States’ investigation found that the stolen credentials were used to exploit numerous security vulnerabilities within Target’s data storage network, allowing the attackers to access a customer data base and install malware on Target’s system that captured payment card information."
$18.0M
Attorney General Jennifer Davenport joined a bipartisan coalition of 42 attorneys general in announcing a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised genetic data of 6.9 million people worldwide, including nearly 150,000 in New Jersey. The settlement provides $18 million to states from available bankruptcy funds, plus enhanced data security and consumer deletion rights for the successor entity, 23andMe Research Institute.
$45.0M
Block, Inc. agreed to a $45 million multistate settlement with 46 states for allegedly misleading consumers about the safety of Cash App, failing to protect users from fraud, and not providing promised fraud protection. The settlement requires Block to improve customer support, stop misleading claims, and educate consumers about fraud.
Attorney General Jennifer Davenport co-led a coalition of 49 attorneys general in calling on the FCC to strengthen rules to cut off scammers' access to legitimate telephone numbers. The coalition's letter requests stronger certification rules, regular reporting, and prohibitions on number cycling to combat illegal robocalls.
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The New Jersey Bureau of Securities announced its 2026 annual investment adviser examination, with a particular focus on firms' use of artificial intelligence and cybersecurity protocols. The examination requires nearly 800 registered investment adviser firms to answer questions about AI use in portfolio management, data protection policies, and third-party vendor due diligence. Failure to comply may result in administrative action.
The New Jersey Bureau of Securities filed a lawsuit against Xiao Hu (aka Mark Hu) and his companies Skyline Technology USA LLC and Thunderbirds.ME, Inc. for allegedly defrauding at least 15 investors out of $2.5 million through unregistered securities offerings. Hu allegedly misappropriated at least $280,000 for personal expenses including a home purchase and vacation, and falsely claimed to have a Ph.D. from Columbia University.