No company wants to be the victim of a security breach. The damage to the bottom line and a company's reputation can cause any organization be more cautions. Just look at Target to see how bad the ripple effect can be.
Since the breach of the payment system during the holiday shopping season last year that compromised customer data of nearly 110 million individuals, it has been a roller coaster for Target. The business has answered to Congress and is currently replacing both its credit card processing systems and two of its top executives.
According to a recent article from USA Today, the effects on the bottom line are now being felt. The latest numbers show that Target's profits during Q1 fell 16 percent. This cost the company $18 million – $26 million in expenses, which was offset by an $8 million insurance claim.
Making matters worse, sales at stores in the U.S. have declined 0.3 percent because customers are still wary of shopping at Target.
In a statement, interim CEO John Mulligan said that these numbers are "in line with expectations."
"While we are pleased with this momentum, we need to move more quickly," he said. "As a result, we have made changes to our management team and are investing additional resources to drive U.S. traffic and sales, improve our Canadian operations and advance our ongoing digital transformation."
It's clear that securing point of sale credit card processing is critical for every business. A single breach can have a far reaching impact on multiple aspects of the business.