Heartland Made Money in First Quarter as Breach Costs Mount
Heartland Payment Systems, the company that suffered a 2008 card security breach that cost card issuers, including credit unions, hundreds of millions of dollars made money in the first quarter of 2010, according to the company.
The company said that while leaving out insurance claims it made on account of the card security breach, it made $1.6 million in the first quarter of 2010. To date, since announcing the breach, the company said it has spent $140 million in costs associated with the card data theft, including money to Visa and MasterCard to help recompense card issuers, legal claims, and investigations, the company said.
Heartland also said it carries a $42.8 million reserve on its balance sheet to help it address remaining claims.