Banks Sue Kmart Over Credit Card Data Breach

Jack Bouboushian reports:

Kmart’s failure to protect customer information with “elementary” security measures left banks liable for the resulting fraud, a federal class action claims.

First NBC Bank filed the class action Tuesday against Kmart Corp. and parent company Sears Holding Corp, regarding an announcement that hackers had breached Kmart’s payment-data systems in early September.

Kmart warned that customers who had used a credit card there for the past five weeks may have had their financial information stolen.

First NBC Bank says the infiltration occurred because Kmart’s outdated anti-virus system had not been updated to detect the malware that the hackers used.

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