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HARRISBURG, Pa. – The $2.2 billion Pennsylvania State Employees Credit Union will continue its lawsuit against BJ’s Wholesale Club and its merchant processor despite the revelation that the big box retailer has set aside a reserve of $6 million to address damages from a card security breach. On March 12, 2004, the company announced that it had suffered a data security breach that allowed some of its customers’ card data to be stolen. A number of financial institutions, including PSECU, had to reissue cards because of the breach and the credit union has sued to recover its loss. The credit union noted that, after the loss, it had first written BJ’s seeking compensation and that the company had declined. PSECU reported that it lost $100,000 replacing the cards which had been compromised. While the restoration of the money would go a long way toward settling the matter, the credit union also pointed out that its suit could help prevent other companies from making some of the same mistakes that it alleges BJ’s made. PSECU’s case charges that BJ’s kept card data stored that contradicts VISA USA’s rules for data security.

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