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$84.4 Million Tab for Global Payment Breach
Global Payments Inc. (GPN) said Thursday a security breach that exposed potentially millions of consumers' payment cards to fraudsters will cost it $84.4 million.
The Atlanta-based company, which processes card transactions for banks and merchants, recorded a pre-tax charge for the amount, equal to 68 cents of diluted per-share earnings, in the fiscal fourth quarter. The amount reflects expected charges from payment networks such as Visa Inc. (V) and MasterCard Inc. (MA) and expenses related to its investigation and remediation of the matter.
"We recently completed our data intrusion investigation, and we are focused on executing the remediation plan," Chairman and Chief Executive Paul Garcia said in a statement.
The company disclosed the breach in late March, saying it believed no more than 1.5 million card numbers were "exported" or taken from its processing network. Last month, though, it said it supplied a larger number of card numbers to the payment networks for monitoring.
