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Veridian Credit Union sues Eddie Bauer for failing to prevent data breach

Posted on March 10, 2017 by Dissent

Matt Day reports that another retailer has been sued by financial institutions hoping to recover their costs of a breach. Veridian Credit Union filed suit, seeking class-action status, in Seattle federal court this week.

The complaint alleges negligence on the retailer’s part and seeks to  compensate financial institutions for costs related to reissuing stolen credit and debit cards, refunding unauthorized transactions and other fallout from the malware breach that affected point of sale terminals in its brick-and-mortar stores.

The deficiencies in Eddie Bauer’s security system include “a lack of elementary security measures that even the most inexperienced (information technology) professional could identify as problematic,” the complaint said.

The company failed to implement chip-based card anti-fraud technology, and exacerbated the problem by failing to notify customers for weeks after learning about the problem, the lawsuit says.

Read more on Seattle Times.  In light of Home Depot’s settlement with banks over its 2014 breach, it will be interesting to see what happens with this one.

Related posts:

  • Eddie Bauer files motion to dismiss Veridian class action over security breach claims
Category: Business SectorMalwareU.S.

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