This is really a desperate act. Both Visa and MasterCard have already stated that Bobo's (Bob O.Carr) Heartland Payment Systems was NOT PCI compliant when the breach occurred and Bobo waited until he could unload a bunch of stock before he announced the breach under the cover of BO's inauguration. From Finextra: Heartland Payment Systems says a fine of over $6 million imposed on it by MasterCard in relation to the massive data breach it suffered last year is illegal and will be contested.
Reporting first quarter results, the firm revealed it incurred $12.6 million in expenses and accruals attributable to the massive data breach, which saw malicious software in the firm's processing system potentially compromising the card data of millions of people. The costs contributed to a first quarter Gaap net loss of $2.5 million. In an earnings call, Heartland CEO Robert Carr says over 50% of the $12.6 million expense relates to a fine MasterCard assessed against the processor's sponsor banks.
The fine was imposed because of an alleged failure by Heartland to take appropriate action once it learned that its systems may have been breached.
Carr says the company responded appropriately and "upon discovering the intrusion it took immediate and extraordinary action to address the intrusion" and also "fully co-operated" with MasterCard's investigation into the breach.
Editor's Note: Bullcrappola! BobO waited until he could sell as much stock as possible and announced the hack on the day Barrack Obamo was inaugurated. That's neither immediate, nor extraordinary action. Once again the room permeates with the smell of "my shit don't stink-iness." Wait until you get the results of the SEC investigation BobO.
"Heartland therefore considers the MasterCard fine to be in direct violation of both the MasterCard rules and applicable law and it intends and is prepared to vigorously contest and it has recommended to its sponsor banks that they vigorously contest, through all means available including litigation if necessary any liability that may be asserted or imposed upon Heartland or its sponsor banks by reason of this fine," says Carr.
Continue Reading at Finextra
