U.S. Bank Hit with Class Action Suit Alleging Data Breach Cover-Up

Jason C. Gavejian writes:

Paintball Punks filed a class action suit against U.S. Bank in Hennepin County, Minnesota. The case was subsequently removed on December 6, 2010, to the Minneapolis District Court. In the complaint, Paintball Punks alleges that between August and December 2009 it received 9 orders totaling approximately $11,000, which were fraudulently billed to U.S. Bank-issued cards. The amount was subsequently chargebacked (U.S. Bank tapped into Paintball Punks’ account to recoup the money after payment).

The online retailer asserts that U.S. Bank failed to protect them and other merchants by failing to remedy a known data breach in the Bank’s system. Despite knowledge of those breaches, U.S. Bank allegedly allowed compromised card accounts to remain active, which led to fraudulent credit card transactions with Paintball Punks and other merchants similarly situated, followed by chargebacks that U.S. Bank processed against the accounts of the merchants.

Read more about the lawsuit on Workplace Privacy Data Management & Security Report

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