Target Facing Lawsuits from Banks over Breach
Feb. 10, 2014
After the headlines screaming about the effect of the Target breach ( and others on the way? ) on consumers, a more subdued fallout shows what might await other retailers caught in the same situation. A Reuters report detailed a growing number of small banks that have sued Target to recover the cost of reissuing credit cards in the wake of the massive security intrusion.
At least two class-action suits already have been filed. One on behalf of New Castle, Penn.-based First Choice Federal Credit Union and one involving Amalgamated Bank in New York. According to the report, retailers whose systems are hacked will face an increasing number of suits from financial institutions that in the past were reticent because they didn’t want to be associated with the breaches.
Gartner security expert Avivah Litan told Brian Krebs that Target could be facing losses of up to $420 million as a result of the breach. The cost of suits like these could make up a significant portion of the burgeoning total.