When Lawsuits Attack

I haven't said anything about the intrusions affecting TJX until now because I haven't felt the need to contribute to this company's woes. Today I read TJX Faces Suit from Shareholder:

The Arkansas Carpenters Pension Fund owns 4,500 shares of TJX stock, and TJX denied its request to access documents outlining the company's IT security measures and its response to the data breach.

The shareholder filed the lawsuit in Delaware's Court of Chancery Monday afternoon under a law permitting shareholders to sue for access to corporate documents in certain cases, The Associated Press reported. The pension fund wants the records to see whether TJX's board has been doing its job in overseeing the company's handling of customer data, the news agency said.


Imagine having your security measures and incident response procedures laid bare for everyone to see. (It's possible there might not be anything to review!) How would your policies and procedures fare?

The following sounds like many incidents I've investigated.

The TJX breach was worse than first thought, TJX officials recently admitted. The company initially believed that attackers had access to its network between May 2006 and January 2007. However, the ongoing investigation has turned up evidence that the thieves also were inside the network several other times, beginning in July 2005.

Originally the company was compromised for nine months, but now the scope could reach almost a year prior. The question is whether this is evidence of compromise by another group or the same group. In either case the company's security posture looks terrible.

The sad part about this sort of incident is that most if not all of the preventative systems TJX might have applied are worthless for response and forensics. I'm guessing TJX is relying on host-centric forensics like analysis of MAC times of files on artifacts on victim servers to scope the incident. I bet TJX is paying hundreds of thousands of dollars in investigative consulting right now, beyond the damage to their brand and other technical and financial recovery costs.

Hopefully these lawsuits will shed some light on TJX's security practices so other companies can learn from their mistakes. This is the sort of incident that my future National Digital Security Board would do well to investigate and report.

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