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It/205 Week 5 Checkpoint

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Submitted By jmarkley
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Checkpoint - TJX Companies
IT/205
March 1, 2013

Checkpoint - TJX Companies
This week’s checkpoint deals with the credit card data theft at TJX companies which occurred in July of 2005. According to the book Essentials of MIS, the thieves used a vulnerable wireless network from one of the department stores on the TJX network to gain access. (Laudon & Laudon, 2011, p. 243) After the thieves had access to the network the installed a sniffer program on one of the main computers of the network. They then were able to download any information that they needed to. The TJX Company was still using outdated weak wireless security encryption called WEP, (Wired Equivalent Privacy), instead of upgrading to a more secure version of wireless security, WPA, (Wi-Fi Protected Access). They also did not have any firewalls or data encryption in place. (Laudon & Laudon, 2011, p. 243).
The tools that was needed to be in place to help stop this from happening was, the stronger wireless security of Wi-Fi Protected Access (WPA) standard with more complex encryption, they also needed to install strong firewalls, data encryption on computers, and to transmit credit card data to banks with encryption.
This breach had some lasting effects on the TJX Company. One of the first effects was that the company had to strengthen the company’s information system security. They also had to agree to have a third-party auditor review their security measures every two years for the next twenty years. (Laudon & Laudon, 2011) According to Essentials of MIS, “TJX has already spent over $202 million to deal with its data theft, including legal settlements. Forrester Research estimates that the cost to TJX for the data breach could surpass $1 billion over five years, including costs for consultants, security upgrades, attorney fees, and additional marketing to reassure customers.” (Laudon & Laudon, 2011)
One of the main moral dimensions that I believe that should be applied to this situation is the fact that the TJX Company owes it their customers to keep their credit card information secure. They need to make sure that they are doing everything possible to make sure that this information cannot be stolen.

Reference
Laudon, K. C., & Laudon, J. P. (2011). Essentials of management information systems (9th ed.). Upper Saddle River, NJ: Prentice Hall.

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