Sony Network Hack Could Cost Credit Firms $300M

• by Brandon Dimmel on 20110502 @ 09:49PM EST | google it | send to friends
• Filed under Gaming | PS3 | (related terms: credit card, hack, accounts, sony, psn)

It's becoming clear just how costly the recent hack of Sony's PlayStation Network (PSN) could really be. A recent report suggests the debacle could cost Sony Corporation about $1.5 billion, with credit card lenders about $300 million in the hole.

"It's not insignificant," said Keefe, Bruyette & Woods analyst Sanjay Sakhrani in reference to the hack. Analysts like Sakhrani have told the media they believe Sony could be on the hook for $1.5 billion. But they're also crunching the numbers trying to figure out how much this issue will cost credit card companies like MasterCard and Visa, and it doesn't look good.

77 Million Credit Card Accounts Affected

About 77 million credit card accounts were affected by the hack, and it costs between $3 to $5 to replace a card. This would cost a lender hundreds of millions of dollars should credit card holders feel their accounts are in danger and request a replacement.

It's still not clear just how many PSN accounts (and the credit cards attached to them) were affected by the hack. The Federal Bureau of Investigation (FBI) continues to look into the matter, and is reportedly working with federal prosecutors in San Diego. (Source: tgdaily.com)

PlayStation Network Hack: A Sign of the Times

The PSN hack is just a sign of the rising threat faced by credit card holders and lenders. With more and more people heading online to purchase everything from downloadable video games to groceries and even automobiles.

"As we move into the digital world, we put more and more of our digital identity into the cloud, or digital devices," said American Express executive Daniel Schulman at a recent conference hosted by PaymentsSource publisher SourceMedia. "Security is going to be a tremendously important part of what we do." (Source: reuters.com)

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