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November 24, 2020

Home Depot agrees to $17.5 million data breach settlement

Retailer will implement practices to strengthen security

DES MOINES — Iowa Attorney General Tom Miller and 46 other attorneys general have obtained a $17.5 million settlement against the Home Depot, resolving a multistate investigation of a 2014 data breach that exposed the payment card information of approximately 40 million consumers nationwide.

The state of Iowa will collect $152,756 through the assurance of voluntary compliance.

The breach occurred when hackers gained access to the Georgia-based retailer’s network and deployed malware on its 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 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.

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 the 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, 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, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

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