PlayStation Data Breach Could Cost Card Lenders $300m

Analysts said that credit card lenders could be facing more than $300 million card replacement costs if customers are affected by PlayStation data breach opt to replace their credit cards. Previously, analysts have estimated that the incident would cost Sony Corp more than $1.5 billion . But this is the first time they also estimated how much major lenders will suffer.

On 17^th April hackers broke into Sony’s PlayStation Network and stole personal details like names, addresses and possible credit card details from 77 million users. Though Sony shut down the network on April 19^th, but disclosed about the hacking issue after a week.

The cost to replace each credit card is about $3 to $5 that lenders will have to pay. The cost includes the new piece of plastic itself, postage and various customer service cost. Credit card lenders could also lose their business even if they quickly replace cards. New cards take time to activate this means customers will use different card said Aite Group analyst Julie Conroy in an email to Reuters.

The FBI is working with San Diego federal prosecutors to determine the facts and circumstances surrounding the alleged crime.

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