Evan Schuman comments: In its latest financial report, Heartland Payment Systems reported that it dropped $129 million on data breach costs last year (an incident that briefly placed Heartland on Visa’s Bad Breach Boy list). The company added that it still has a reserve of $100 million for additional expenses. As a processor, Heartland’s pain…
Category: Financial Sector
UK: Mortgage company accidentally discloses over 15,000 account details
The Information Commissioner’s Office (ICO) has found Redstone Mortgages Ltd in breach of the Data Protection Act (DPA) after personal information relating to 15,333 mortgage accounts was emailed to a member of the public by mistake. The information, which included personal data relating to individuals’ arrears or possession proceedings, was sent to Redstone’s head office…
Another business sues its bank over unauthorized ACH transactions
Brian Krebs on another case where a business is suing its bank over unauthorized transactions that were not credited or reversed by the bank: On Feb. 10, Hudson, N.H. based Cynxsure LLC received a voicemail message from its bank, Swift Financial, a Wilmington, Del. institution that focuses on offering financial services to small businesses. The…
Customer Vs. Bank: Who is Liable for Fraud Losses?
Linda McGlasson writes: At first this court case was a curiosity: Experi-Metal Inc. (EMI), a Michigan-based metal supply company, sued Comerica Bank, claiming that the bank exposed its customers to phishing attacks. But now this story shapes up as a significant test case for the banking industry, raising several key questions that must be answered…
(update) 30 reports of ID theft at East Chicago tax service
Leah Hope reports that the number of ID theft victims who all used an H&R Block service is growing: Dozens of East Chicago, Ind., residents who went to H&R Block had their identities stolen, police said. The IRS and East Chicago police are investigating claims that someone got a hold of taxpayers personal information. Thirty…
Business Counter-Sues Bank in Fraud Dispute
Linda McGlasson reports: The Texas machinery company that was sued by its bank after a data breach has filed a countersuit against the institution, saying it “won’t be bullied.” The case pits Plano, TX-based Hillary Machinery, Inc. against PlainsCapital Bank, a $4.4 billion institution headquartered in Dallas. Hillary was defrauded by cyber thieves who made…