Colorado will receive nearly $280,000 from a multimillion-dollar settlement reached between retailer Target and 47 states and the District of Columbia.
The $18.5 million settlement addresses allegations from a data breach in 2013.
Colorado Attorney General Cynthia Coffman's office said in a news release the breach affected about 1 million Colorado consumers.
Cyber attackers used stolen credentials to access Target's server, allowing the attackers to exploit weaknesses in the company's system.
Coffman said the Target case highlights what she called "weak" privacy and data breach laws. She announced plans to examine Colorado privacy laws and suggest stiffer protections.
The settlement requires Target to develop a security program and maintain appropriate encryption of consumer data.