Communications of the Association for Information Systems


TJX Companies Inc. is a leading off-price apparel and home fashions retailer with headquarters situated in the United States. In late 2006, the company discovered it was victim to a massive security breach which compromised millions of customer records. Despite the internal exchanges within the IT department concerning the upgrade of their wireless security standard protocol, the company opted for cost savings rather than increased spending. As the company financials took a hit, the company was faced with pending lawsuits from credit card companies and affected customers; government scrutiny of IT security standards; loss of consumer confidence; among other concerns. Though it has not yet concluded the extent of the financial impact of this incident, analysts estimate the full cost of the breach might amount up to one billion dollars. This case presents a “wake-up call” for retail companies about the importance of IT security.





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