Home Depot agrees to $17.5M settlement with PA, 45 other states

National News

HARRISBURG, Pa. (WTAJ) — Attorney General Josh Shapiro today announced that his office, along with the Attorneys General of 45 other States and the District of Columbia have obtained a $17.5 million-dollar settlement against The Home Depot, resolving a multistate investigation of a 2014 data breach which exposed the payment card information of approximately 40 million Home Depot consumers nationwide.

The Commonwealth of Pennsylvania will collect $686,575.43 through this settlement.

The breach occurred when hackers gained access to The Home Depot’s network and deployed malware on The Home Depot’s self-checkout point-of-sale system. The malware allowed the hackers to obtain the payment card information of customers who used self-checkout lanes at The Home Depot stores throughout the U.S. between April 10, 2014 and Sept 13, 2014.

In addition to the $17.5 million total payment to the states, The Home Depot has agreed to implement and maintain a series of data security practices designed to strengthen its information security program and safeguard the personal information of consumers.

“Tens of millions of people have their data compromised every year, and a large number of those breaches come from preventable security flaws at retail stores,” said AG Shapiro. “We need to drill the idea into these large companies that if you plan to do business in Pennsylvania, you need to protect our consumers’ data, and I’m confident that this settlement will help prevent similar breaches in the future.”

Specific information security provisions agreed to in the settlement include:

  • Employing a duly qualified Chief Information Security Officer reporting to both the Senior or C-level executives and Board of Directors regarding Home Depot’s security posture and security risks;
  • Providing resources necessary to fully implement the company’s information security program;
  • Providing appropriate security awareness and privacy training to all personnel who have access to the company’s network or responsibility for U.S. consumers’’ personal information;
  • Employing specific security safeguards with respect to logging and monitoring, access controls, password management, two factor authentication, file integrity monitoring, firewalls, encryption, risk assessments, penetration testing, intrusion detection, and vendor account management; and
  • Consistent with previous state data breach settlements, the company will undergo a post settlement information security assessment which in part will evaluate its implementation of the agreed upon information security program.

Other states participating in this settlement include: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

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