Data Breaches Cost Millions
Home Depot was hacked reported in September that they were hacked. Compromised data included 53 million customer email addresses and 56 million credit card accounts. The security breach cost the home improvement chain millions.
Home Depot has a $100 million insurance policy for expenses related to the hack, but it has cost $28 million so far and is expecting the cost to be up to $34 for the year. These costs don't include a number of other expenses, such as litigation, investigation, fraud reimbursements and the like.
Luckily for Home Depot, an improving housing market has helped increase third quarter sales. Customers may also have more faith in a company that has been recently hacked as companies tend to update and increase security after catastrophic events such as these. Even if that's the case, letting yourself get hacked is not a recommended tactic for increasing business.