Feeds

Banks lob sueball at Trustwave, Target over breach

'Round-the-clock monitoring' spun out, missed vulnerabilities

Next gen security for virtualised datacentres

A group of banks has filed a class action lawsuit against Target over its recent data breach, and has named security company Trustwave as a co-defendant.

The late-2013 security breach resulted in at least 40 million customers' credit cards being compromised, after a Maryland contractor's systems provided a bridge into the retail giant's systems.

Trustwave is being targeted because, according to the banks, vulnerabilities in Target's systems remained “either undetected or ignored” in audits as recently as September 2013. These vulnerabilities included the fact that Target stored “credit and debit card data on its servers for six full days before hackers transmitted the data to a separate webserver outside of Target's network”.

Moreover, the filing claims, the Target breach went undetected for three weeks, even though the company “provided round-the-clock monitoring services to Target”.

It's against Target, however, that the most serious allegations are levelled. The class action led by Trustmark National Bank and Green Bank, say the retailer should not have allowed an outside contractor the access to its network that brought about the breach, and that it violated federal and state laws in storing the credit card data on its network.

Moreover, the lawsuit notes, repeated warnings and breaches stretching back to 2007 should have left Target in no doubt that vulnerabilities existed.

The suit cites America's Consumer Banking Association as estimating that the direct costs to banks have already reached $US172 million in re-issuing cards alone, with perhaps $US1 billion in the longer-term costs of fraudulent transactions resulting from the breach. ®

The essential guide to IT transformation

More from The Register

next story
Super Cali signs a kill-switch, campaigners say it's atrocious
Remote-death button bad news for crooks, protesters – and great news for hackers?
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
Felony charges? Harsh! Alleged Anon hackers plead guilty to misdemeanours
US judge questions harsh sentence sought by prosecutors
Oz biz regulator discovers shared servers in EPIC FACEPALM
'Not aware' that one IP can hold more than one Website
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?