Home Depot Settles Data Breach Multi-state Enforcement Action for $17.5 Million

Home Depot has agreed to settle a multi-state enforcement action by 46 U.S. states and Washington, D.C. arising from the data breach that occurred in 2014. Home Depot has agreed to pay $17.5 million to put the enforcement action behind it. The investigation was led by the Attorneys General of Connecticut, Illinois and Texas.

The multi-state investigation followed Home Depot’s data breach that affected 40 million customers who used self-checkout terminals in its U.S. and Canadian stores between April 10, 2014, and September 13, 2014. According to the investigation, hackers used a vendor’s username and password to infiltrate Home Depot’s network and deployed malware to access the customers’ payment card information. In addition to the credit card information, at least 52 million people’s email addresses were exposed.

In announcing the settlement, Connecticut Atty. Gen. William Tong stated that companies collecting sensitive personal information “have an obligation to protect information from unlawful use or disclosure… Home Depot failed to take those precautions.” In addition to the monetary settlement, Home Depot has agreed to hire a Chief Information Security Officer, upgrade its security procedures and provide employee training. Home Depot denies liability in the matter.