A Sony PlayStation Network breach could result in more than $300 million in losses for credit card companies if customers decide to replace their credit cards.
According to a report on Reuters, the recent Sony PSN data breach could have serious implications for credit card lenders, who don't normally have to deal with so many card replacements at one time.
Analysts estimate that if customers replace their credit cards, credit card companies would have to cough-up $3 to $5 for each card replaced. These costs include the cost for the card itself, postage and other customer service costs.
Before this, analysts had predicted that the data breach, which has affected more than 77 million users worldwide, could result in more than $1.5 billion in costs for Sony. The company has maintained that it does not believe that credit card information was stolen but panicked customers would like to be on the safer side and cancel or replace their credit cards.
“Security breaches happen, they're going to continue to happen ... the mission of the banking industry is to keep the customer base safe and customers feeling secure about their financial transactions and payments,” Citigroup head of global enterprise payments Paul Galant said in a statement to Reuters.
Of course, none of this takes the potential losses from credit card fraud into account.