Tuesday, April 8, 2014

News Scan: Security firms face data breach liability...

IT security vendors were put on notice this week that they could become targets of lawsuits if they fail to detect security attacks that lead to client data breaches. According to an article at InfoWorld, security vendor Trustwave was named as a defendant in a class-action suit for failing to detect the attack that led to Target's breach, one of the largest on record. Trustwave "failed to live up to its promise to meet industry standards," the suit filed in U.S. District Court for the Northern District of Illinois alleges. The plaintiffs are Trustmark National Bank of New York and Green Bank of Houston. "The lawsuit, one of dozens filed against Target, illustrates the growing frustration of banks burdened with the costs of reissuing compromised cards and their willingness to pull in other companies viewed as culpable into legal battles," the article notes.

(Read my complete article at FierceCIO)

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