Home Depot confirmed that the data hack from April to September affected 56 million credit cards used for transaction in the stores. This signifies that the hack is bigger than the one in Target Corp.
The Atlanta-based retailer said that the hackers used tools that haven't been seen by security systems before, avoiding detection for five months. The company started investigation on September 2 after the law enforcement and banking partners pointed to Home Depot as the source of the card data being sold online.
The company becomes the biggest victim from the retailers hacked in recent years. They're expected to pay $62 million to recover from the damage and to pay the expenses on call-center staffing and other legal works. Insurance for those affected will amount to about $27 million.
Frank Blake, Home Depot's chief of executive, said, "We apologize to our customers for the inconvenience and anxiety this has caused, and want to reassure them that they will not be liable for fraudulent charges." Blake said that they prioritize customers first and will continue to do so.
Surprisingly, the hacking doesn't hurt the sales and the growth prospect of the retailer. Home Depot expects for the revenue to increase at 4.8%. They also predict for the profit to reach to reach $4.54 per share. Since the attack was revealed, the shares have grown by one percent.
Home Depot clarified that the personal identification numbers of the debit cars affected by the hacking aren't compromised. Transaction done online and at Mexico stores aren't affected as well.
Analysts said that the retailer's revenues aren't affected as the breach was announced after the peak season of the company. Unlike for Target who announced the hacking in September, the company's key selling season didn't take a hit.
The attack on Home Depot also coincides with the transition of CEOs. The president of U.S. retail, Craig Menear, will overtake Blake's position on November.
