DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Recommended: Gonzalez Lawyers, Judges Debate Data Breach Costs

Posted on March 25, 2010 by Dissent

Evan Schuman writes:

When two Boston-based federal judges sentence Albert Gonzalez Thursday (March 25) and Friday (March 26) for a rash of retail cyber-break-ins that he confessed to orchestrating, the exact sentence may be academic. The key legal argument is shaping up to be this question: “When a retailer is breached, what’s the most reasonable way to determine loss?” The answer is proving to be as baffling—or contradictory–to the federal jurists as it is for most retail CIOs.

[…]

The law says the court should define “loss” as “the greatest of actual loss or intended loss.” The government cited a recent appellate court decision as offering yet a third metric: “The First Circuit has held that, in the case of stolen credit cards, intended loss reasonably may be found to be the stolen payment cards’ aggregate credit limit, since it is natural and probable to expect that purchasers of the stolen card numbers will charge as much as possible to them. It is also reasonable to hold a defendant accountable for the amount of loss as measured by the aggregate credit limit, even though the defendant’s personal profit has been dramatically less.”

Defense counselor Martin Weinberg disagreed. He pointed out that “the government’s discussion omits the fact that tens of millions of the accounts had expired and would therefore no longer have had credit limits at all.” He added that “the $500 per access device equation from which this figure is derived is completely arbitrary and lacking in any empirical validation” and that it was “irrational.”

Read more on StorefrontBacktalk.

Not for nothing, but the court documents in the Gonzalez use figures for the TJX breach that do not match what media and web sites such as this one have reported in terms of number of account numbers or records stolen. For example, Weinberg refers to the the TJX breach as capturing 36 million card numbers, not 45 million or 94 million (as the banks had claimed in their lawsuit).

Category: Commentaries and AnalysesOf Note

Post navigation

← Haddonfield students arrested in computer hacking
Three newly revealed breaches affect over 20,000 (updated) →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • When ransomware listings create confusion as to who the victim was
  • Rajkot civic body’s GIS website hit by cyber attack, over 400 GB data feared stolen
  • Taiwan’s BitoPro hit by NT$345 million cryptocurrency hack
  • Texas gastroenterology and surgical practice victim of ransomware attack
  • Romanian Citizen Pleads Guilty to ‘Swatting’ Numerous Members of Congress, Churches, and Former U.S. President
  • North Dakota Enacts Financial Data Security and Data Breach Notification Requirements
  • Pro-Ukraine hacker group Black Owl poses ‘major threat’ to Russia, Kaspersky says
  • Vanta bug exposed customers’ data to other customers
  • Lyrix Ransomware Targets Windows Users with Advanced Evasion Techniques
  • Central Maine Healthcare tackles suspected cybersecurity issue; hospitals remain open

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Florida ban on kids using social media likely unconstitutional, judge rules
  • State Data Minimization Laws Spark Compliance Uncertainty
  • Supreme Court Agrees to Clarify Emergency Situations Where Police Don’t Need Warrant
  • Stewart Baker vs. Orin Kerr on “The Digital Fourth Amendment”
  • Fears Grow Over ICE’s Reach Into Schools
  • Resource: HoganLovells Asia-Pacific Data, Privacy and Cybersecurity Guide 2025
  • She Got an Abortion. So A Texas Cop Used 83,000 Cameras to Track Her Down.

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.