Retail giant Target is facing an onslaught of lawsuits due to its credit card data breach that affected over 70 million customers. Two months prior to the cyber hack that affected credit and debit card holders, a Target computer analyst had warned the company about payment system weaknesses, according to The Wall Street Journal.
The Target computer analyst’s warning wasn’t the only one—it followed a series of reports from research firms and government advisories warning the retailer of payment terminal threats. Target failed to improve credit card data security despite the warnings.
The credit card data attack happened from Nov. 27 through Dec. 15. Cyber criminals penetrated the system when the credit card payment terminals sought provider authorization and card data was decrypted. Hackers accessed the personal data of at least 70 million customers and information on 40 million debit and credit cards.
Target has not issued a comment regarding claims it ignored the warnings of its cyber security team. The retailer has notified the body of Congress investigating the incident that its payment systems passed a September audit.
Banks and customers have filed 68 class action suits in 21 states and Washington, D.C., alleging Target failed its fiduciary duty to customers, violated consumer privacy rights, and was negligent because it failed to properly secure customer data, reports The Wall Street Journal.
Small banks are seeking damages from Target for the costs they suffered because of the breach, including the closure of customer accounts to prevent fraudulent activity, and spending time and money refunding lost deposits and creating new cards.
If you believe you have fallen victim to a credit or debit card security breach, do these four steps:
- Report the incident to your credit card company or bank.
- Replace your credit or debit card.
- Change your pin number.
- Contact a consumer fraud attorney who can review your case to determine if negligent business practices caused the breach.
At Gilreath & Associates, we fight consumer fraud in Nashville, Knoxville, and communities across Tennessee. We are committed to using the legal process to help consumers. Schedule a free consultation today.