Jan 092019

AP reports:

More than 40 state attorneys general have announced a $1.5 million settlement with The Neiman Marcus Group LLC over a data breach the Dallas-based retailer disclosed in January 2014.

The breach exposed customer credit card data at 77 Neiman Marcus stores nationwide. Over a three-month period in 2013, about 370,000 Neiman Marcus credit cards were accessed by unknown third parties unlawfully, and at least 9,200 were used fraudulently.

Read more from AP on Bluefield Daily Telegraph.

Here is the statement from the Texas Attorney General’s Office:

Attorney General Ken Paxton today announced a $1.5 million 43-state settlement with The Neiman Marcus Group LLC, resolving an investigation into a data breach the Dallas-based retailer disclosed in January 2014. The breach, which affected 65,644 Texans, exposed customer credit card data at 77 Neiman Marcus stores nationwide.

Over a three-month period in 2013, approximately 370,000 Neiman Marcus credit cards were unlawfully accessed by an unknown third party, and at least 9,200 of them were used fraudulently.

“Texas law requires businesses to implement and maintain reasonable safeguards against cyberattacks to protect consumers’ personal information from unlawful use or disclosure,” Attorney General Paxton said. “I urge companies to evaluate whether they have in place a thorough and ongoing written information security program that serves to safeguard their customers’ information.”

Under terms of the settlement, Neiman Marcus will maintain reasonable procedures to protect its customers’ personal information and guard against future attacks by hackers. The retailer must obtain an information security assessment and report from a qualified third-party professional and detail any corrective actions that it takes.

Attorney General Paxton’s investigation was conducted pursuant to the Texas Identify Theft Enforcement and Protection Act. Texas will receive $95,000 in attorneys’ fees and costs as part of a 43-state settlement with Neiman Marcus.

View a copy of the settlement here: https://www.texasattorneygeneral.gov/sites/default/files/images/admin/2019/Press/NMarcusAVC%201%208%202019.pdf

Dec 082018

Joey Gill reports:

 A Dickson attorney is facing federal charges after a Department of Justice investigation uncovered $1.3 million stolen from clients and false tax returns filed.

Jackie Lynn Garton, 54, was charged Thursday with wire fraud, aggravated identity theft, and tax fraud related to a years-long scheme during which money was stolen from clients and his own law partners.

Read more on WSMV.
Dec 042018

Christopher P. Hahn. writes:

The U.S. District Court for the Southern District of California recently dismissed a consumer’s putative class action lawsuit against a mortgage lending and servicing company for purported damages sustained as a result of a security breach wherein his personal information was compromised, and the hackers attempted to open credit cards in his name.

Although the Court previously concluded that the consumer had standing to bring his claims under Article III of the Constitution, it held that the consumer failed to state causes of action for negligence and violations of various California laws.

A copy of the opinion in Razuki v. Caliber Home Loans, Inc. is available at:  Link to Opinion.

Read more on MauriceWutscher Consumer Financial Services Blog.

Nov 262018

Rachel Z. Arndt reports the latest development in litigation stemming from a 2014 data breach disclosed by the University of Pittsburgh Medical Center. Within a year, more than 800 employees had reportedly become victims of tax refund fraud/identity theft.

The Pennsylvania Supreme Court last week revived an employee lawsuit against UPMC stemming from a data breach, ruling that companies must protect digitally stored employee data.

The UPMC health system is responsible for protecting the data it required its employees to provide, the court ruled. Employees sued the system for breach of contract after hackers stole the personal information of about 62,000 current and former employees. Hackers used the data—which included Social Security numbers, tax information, and bank account numbers—to file fraudulent tax returns and then to get the related tax refunds.

Read more on Modern Healthcare.

Nov 232018

Matthew Field reports:

Hackers are offering Black Friday discounts for stolen credit card details being bought and sold on the dark web as they seek to cash in on an online shopping bonanza.

Security experts including the FBI, the UK’s cyber defence agency and online security firms have warned of a wave of hacking and fraud as criminals exploit Britain’s biggest weekend of online shopping across Black Friday and Cyber Monday.

Read more on The Telegraph.