Feeds

Banks lob sueball at Trustwave, Target over breach

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

The Essential Guide to IT Transformation

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. ®

Build a business case: developing custom apps

More from The Register

next story
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
'Blow it up': Plods pop round for chat with Commonwealth Games tweeter
You'd better not be talking about the council's housing plans
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

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.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.