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Home Depot spent US$43 million in its third quarter dealing with the fallout of one of the largest ever data breaches, highlighting the costly nature of security failures.
The retailer said in a regulatory filing on Tuesday that it expects $15 million of that cost will be reimbursed by a $100 million network security and privacy liability insurance policy.
The $43 million was spent on investigations, providing identity theft protection services to consumers, increased call center staffing and other legal and professional services.
Attackers stole 56 million payment card details and collected 53 million email addresses of people who shopped at Home Depots stores between April and September in the U.S. and Canada. They gained access to Home Depots network by using the login credentials of one of the retailers vendors.
The retailer warned that it expects to incur significant legal and other professional services expenses associated with the data breach in future periods.
Home Depot is also facing 44 actions filed in courts in the U.S. and Canada. It expects more claims may be filed on behalf of customers, payment card brands, payment card issuing banks and shareholders.
Payment card networks may make claims seeking to recover incremental counterfeit fraud losses and costs for reissuing cards, Home Depot wrote. Its liability will depend on whether it was noncompliant with data security standards, which contributed to the breach.
An independent auditor found that its network which handles payment card data was compliant with data security standards in the fall of 2013, Home Depot wrote. But it was undergoing certification for 2014 when the data breach occurred, it said.
The forensic investigator working on behalf of the payment card networks may claim the company was not in compliance with those standards at the time of the data breach, Home Depot wrote.
Retailers are required to follow the Payment Card Industrys Data Security Standards (PCI-DSS), which are a set of guidelines for securing card data. If found noncompliant, a business can face liability.
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Home Depot spent $43 million on data breach in just one quarter
Bitdefender BOX can replace or run alongside a home router to scan all network traffic for security threats
Bitdefender BOX is managed from an Android or an iOS application
Antivirus firm Bitdefender unveiled a hardware security appliance for home networks Tuesday that aims to protect devices by scanning network traffic to detect and block potential security threats.
The new Bitdefender BOX is a mix between a router, network firewall and intrusion prevention system. It can sit behind an existing router, connected to one of its Ethernet ports, it can be placed in front of a router, so that it also protects the router from Internet-based attacks, or can act itself as a router.
The device has a single-core 400 MHz MIPS microprocessor, 16 MB Flash memory, 64 MB DDR2 RAM, two 10/100 Ethernet ports and a wireless chipset that supports the 802.11b/g/n Wi-Fi standards and is capable of speeds up to 150Mbps.
Despite these unimpressive technical specifications, Bitdefender BOX does not affect the network performance when positioned alongside a router to scan network traffic because it doesn't perform deep packet inspection, according to Bogdan Botezatu, a senior e-threat analyst at Bitdefender.
The device intercepts and scans only essential parts of the data packets that flow in and out of a network to identify known malicious patterns, Botezatu said. This is done with help from Bitdefender's cloud-based threat intelligence network, he said.
When used as a router itself, the device certainly cannot match the network performance and some of the functionality provided by high-end home routers. It does, however, provide a security layer that the vast majority of such devices lack and also has a smaller attack surface than most of them.
BOX costs $199, which includes the price of the hardware and a one-year subscription. Users will then have to pay $99 for every year after that, regardless of the number of devices protected by the appliance. Orders will open in mid-December and shipping will start in January, according to the company.
Network security appliances like intrusion detection and prevention systems are common on corporate networks. Preventing malware infections on end-point systems is increasingly difficult, so blocking malicious traffic at the network level, including attackers' attempts to control infected systems or to extract data from them, has become essential to limiting the impact of such security breaches.
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Bitdefender security appliance for home networks seeks to replace end-point antivirus