Feeds

Banks lob sueball at Trustwave, Target over breach

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

The smart choice: opportunity from uncertainty

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. ®

Designing a Defense for Mobile Applications

More from The Register

next story
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
UK.gov's Open Source switch WON'T get rid of Microsoft, y'know
What do you mean, we've ditched Redmond in favour of IBM?!
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Putin: Crack Tor for me and I'll make you a MILLIONAIRE
Russian Interior Ministry offers big pile o' roubles for busting pro-privacy browser
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.