. >> that was reasonable to d the own internal investigation also t.j. maxri: this is a different case real world theft not online. >> but thesemagnetic cards inxistence for ever. he would think with this particular point the point i try to make is that aspect has had stakes in other situations there is ttlements because this offer issues are known. these are not new problems. >> i gave you that but with dollars and cents in front of a jury or judge for damages you really have damages when erything is paid for? >> that is a problem. >> but the person in the street yes the fraudulent charges may be paid by somebody ails the late payment fees what about overdraft otection or identity theft? >> i agree with all of that. >> i completely agree but in the court of loss. -- court of law. i agree. i love to shop there but now claims scared. but they say we take care of all of that then there is nothg to argue about. >> but they don't. >> they will. >> other retailers there was $7 million worth of damages with 40,000 class members they got what it is $75 each gerri:

t.j. max, by the way, was hacked in the mid 2,000's. 36 million were potentially compromised. play station so bad was that the u.k. government fined sony. >> so obviously this hurts for customers but it has to hurt target as well at this time of two year. >> it hurts the customer, if they don't look at their credit card statements. very important to do that. if you see a fraudulent charge on that the bank will look after it. but target is in a bad shape, because first of all, they have this issue whereby now it's christmastime, desks november, that's about 20% of all their retail income for the year. so if customers are now going to not go to target because of what has happened then that's really not very good news. plus, they have hundreds of millions of dollars to put this right, which they have to do. >> right. >> and then on top of that they are a discount store, they don't have very big margins. difficult to make the money they want to make and so unchanged if ukraine fortunately they have had a rough ride. bob sullivan investigative journalist who focuses on technology c

. >> david, t.j. max was hit in the mid 2,000's.nd sony play station had work to do with their games because over 100 million people who played play station online were effected by just this sort of thing, and sony was fined in the united kingdom, the authorities there thought they could have done something to stop it. >> such a helpful piece, thank you so much. here now to walk us through the a cyber security firm, and he joins us live. chris, i wonder if you can clarify. we see a lot of people at the target stores but there's nothing as far as the swipe machines. the breech comes sometimes between target, and how two places ethey are at the point of sale themselves or at the point where they transmit two data to the company that does the transactions for them. the payment processor. so it had to be one of the two, and some of the early indication is it is the point of sale. so this means thousands and thousands of these term somehow goto collect the mag stripe data. >> but again, nothing that any consumers that are swiping their c

and then the other thing is, none of the off-price stores marshal's t.j. maxnd home goods have to rethink how to get their customers back this year. >> mr. beamer thank you so much. >> thank you. >> from the death of nelson mandela to the nuclear deal with iran, al jazeera america is looking back at the top stories. in october more than 350 african entrants drowned. claudio lavonga talked to how this crisis arose. >> he's been a fisherman for 40 years, the sea was his second home but two months ago he witnessed a tragedy that made him scared of the open waters. >> translator: we were sailing back to the port when we spotted a stranded boat. i saw lots of heads in the water. we rushed to their hope. >> reporter: at the beginning of october he and his brother were the first rescuers to arrive at the wreck of of boat, more than 350 migrants dierd when their ship capsized. they pulled 18 migrants from the sea. he is happy he saved so many lives but still haunted by those he left behind. >> translator: they were screaming, raising their arms, everyone we saved one

we is a similar breach in t.j. max in 2007 that cost the company $265 million. are some shoppers already saying they are foregoing their stop at target because they are still worried about any fallout. it's the companies hurt by this. the consumers will fare just fine on the other side. >> this is the second largest credit card security breach in history. what is it about our credit card system in this country that makes it vulnerable to this kind of fraud in particular? >> craig, the incidents at t.j. maxx and target, when you go to a store and paying with credit card and swipe it in the card reader, two things happening. number one, you're basically sharing via the magnetic strip, all of the information embedded in your card with whatever system they are using. target had a centralized system if any hacker was able to get into that centralized hq with that data in there, you could potentially cause massive damage which is happened here. frequent travelers will know when you go to europe and other countries abroad, they have a chip and pin. you stick it in a ma

history back in 2007 cost the parent company of t.j. max $256 million in settlements. now if you try to call target customer service, chances are you will find the phone lines pretty jammed. target says it has more than doubled the number of people answering phones. even with that extra help the backup is huge. the retailer says as of yesterday it has spoken with 17 million customers. >>> as we reported before, he had war snowden says his mission has been accomplished as we just mentioned. he told the washington post that he is satisfied because journalists have been able to report about the nsa's surveillance programs. he also says he's not trying to bring down the spy agency, he's working to improve t. president obama, as we've just reported, said he will consider changing the way the nsa collects data on millions of americans. >>> thieves stole a family's christmas present right from under their tree, but it's how they got into the house that may have you second guessing the safety of your own home. >>> plus, how much sleep do you need to function properly? the new

i remember t.j. max not long ago having this issue as well. >> absolutely. when you think the first thing you think, how easy is it for these folks to steal our information? you know? they were able here in target to steal information by using potentially the point of sale device. there is another point of sale device that all of these retailers are deploying, a mobile one. i recently spoke to a hacker who demonstrated how easy it is to hack it. check this out. >> i'm connected to this phone wirelessly right now so in real time i am stealing credit card data. i just have to log in. i can make a selection here. and then i can do a credit card swipe. i now have all your credit card data right in here. >> that was easy. that took no time at all. >> unreal. i just said how easy is this? a lot of the software is still in retailers. this is something target is obviously taking very seriously. the ceo issued a statement. he said target's first priority is preserving the trust of our guests. we've moved swiftly to address this issue so guests can shop with confidenc

a silver lining, at least it wasn't 45.7 million users like in 2005 that impacts marshall's and t.j. maxw to improve and ensure that the nsa is far more accountable as it relate to the private sector, there are a number of things that have to be done. we have to be very careful about our data and i know there was a slide that said swipe your debit card as a credit card. that's not going to work either. so we've got a lot to figure out and perhaps there should be a task force on this, too. >> we should gotten you the soap box instead of the chair this afternoon. >> i'm sorry. >> she used the credit card to pay for the soap box. >> there's a frustration that a lot of people have right now. so done apologize for it. matt, the reason we kind of put these things together is we just don't feel comfortable with new technology. the president tried to reassure the american public at least about the eves dropping part. >> i have confident in the fact that the nsa is not engaging in domestic surveillance or snooping around, but i also recognize that as technology's change and people can start runni

that's where nordstrom rack and t.j. maxen very successful in that market. >> how do you feel where inventory is being put to local brick and mortar stores and sent out via online channels. is that effective or not? >> the sales levels have gone from 10% to 15% across my universe. you have the ability to categorize where your inventory sits. you can improve your mark down levels. any given store is never going to be as effective as a d.c. -- >> d.c. distribution center. >> sorry. the people working in the stores have to learn how to ship out and you think about the fulliliment that companies like amazon or dedicated e-commerce will have, it's never going to be as strong. >> what games do you like at the moment? >> i think gap could be a winner and signet jewelers is going to be a holiday winner. >> guys, have a great holiday. simeon and ed. >> coming up, what to expect from today's trading session. take a look at futures. the dow is up five of the past six christmas eves. we'll see what this brings when "squawk on the street

retail data breaches in history behind the data of 7 million payments on credit cards stolen from t.j. max. c.e.o. craig steinhoff said: target is one of the world's largest retailers operating in the u.s. and canada. last year, the company generated $73.3 billion in revenue. the company employs 365,000 employees. we'll have more on this developing story later in the program. >> the arrest of an indian diplomat in new york city is scraping the relationship between the u.s. and its long time ally. now there's conflicting tones coming out of new york and washington after the alleged mistreatment. india's outrage has set off a fire storm against the prosecutor who decided to charge the indian diplomat. she was strip searched, sodomize said and held in a jail cell with drug addicts. the u.s. attorney fired back wednesday, denied she was ever handcuffed or restrained. he also said: he took it a step further adding: >> secretary of state john kerry chose to take a conciliatory approach to easing tensions between the two allies, calling a cabinet official to express regret over the arrest. state

you just heard joe mentioned $65 million cost to t.j. maxhen they suffered a similar reach several years ago. banks are trying to stem any potential to be more fallout on their end, limiting account activity on some 40 million cards caught in this web just as consumers need those cards to finish their holiday shopping. chase has limited to $100 cash wi withdrawal and $300 credit purchases. citigroup taking similar steps in some cases blocking accounts. they are working closely with the retailer to understand more about what happened. the problem is, they have very little information about the scope of the breach. they say it is a target issue. for people that need access to that money, that's little comfort when they are dealing face to face with these banks. >> what a weekend of statements from all the major banks. our kayla tausche back at hq >>> later on, ohio car dealers have a major bone to pick with tesla. one of them will tell us why they are taking legal action against the electric carmaker. futures look pretty good here, coming off