Feb. 26 - Jeffrey Goldfarb and Richard Beales discuss the potential $1 billion tab for Target's massive data breach and what it means for Corporate America.
Target is out of its first results since the big. Data breach around christmastime. And giving us a glimpse into what the cost could be. It's sort of falling down on the job when it comes cyber security Richard target isn't telling us a -- a year trying to kind of. As our government stuff has come out of a little bit from target that we go the full courtly numbers that sales -- -- they were expecting what Michael comparable sales. To be flat. Before this -- they ended up to an office and you can apply that sort of quote -- top line and USA bags and that is maybe what they've lost you can claim that so -- there are many things that work of course but. Suppose I told you to customers. Shying away from target price. Half a billion dollars in lost revenue now of course that does little drop down to the bottom line but the -- and yeah it doesn't necessarily bounced back and following quote zionist right -- of settlers at college of the billion dollars in -- Of lost business. And then that then there's a bit -- on the in which target is estimating yet which is. The payment networks. People we've had to reissue clubs to everybody affected and got up to a 110 million people which is that if the law. Yeah have to re issue because whether people had experienced fraud actually experienced full well that cost money. They they get to claim from some mixture of the retailers and the parties involved and so targeted system is all kinds that cost -- different plays out of the other people are paying that that. Maybe. -- -- one to one estimate 400 to one point 12 million to one point one billion big big big right judgment a -- to -- another half billion. So it's at least -- industry at least the billions children is investing from Austin chip technology that a little bit late but better late than never maybe. And that she huge distraction of appeasing customers try to win customers bank. Amended to get on top of this pretty quickly they are they going to -- -- tells -- because money and it was and it isn't just a target question -- your. The point you're making is that this is. This is sent up red flags at Chrysler. Unit if you followed a little bit the security side of things you see reports you know some of these consultant seasons it security companies come and every year and say. Islam preaches. We -- have -- The guys that are involved in the big breaches you know they run seminoles the boards and see is that nobody avoid breaches but. To take them -- and deal with them and that the message pretty recently has been the -- amazed that some -- throw it. The most -- frankly behind the game if this is coasting target. A billion -- plus that's that's not on a single breach -- -- I look below the million customers but it's the single that's not pocket change anyone that should be away typical now. It's so. You know I think my feeling would be if this happens to somebody else shame on them. -- really today and that right exact very -- look forward to the peace. And I will be back with more breaking news tomorrow.