http://www.bankinfosecurity.com/articles.php?art_id=3668 By Tracy Kitten Managing Editor Bank Info Security May 22, 2011 A Chicago consumer affected by the Michaels card breach has filed a federal lawsuit against the crafts retailer, claiming it should have better protected customers' cards from breach and compromise. Brandi F. Ramundo had more than $1,300 withdrawn from her checking account, after reportedly making a debit purchase worth less than $20 at Michaels. Her five-count suit seeks class-action status, a jury trial, compensatory damages, and consequential and statutory damages. It also includes an order for Michaels to pay for card-fraud monitoring services for consumers hit by the scam, as well as compensation and punitive damages for costs associated with the suit. Ramundo's suit raises questions about liability after a card breach fraud. What role should merchants play, when it comes to ensuring transactional security, and how should financial institutions, as card-issuers, fall into the fray? Attorney Randy Sabett, partner and co-chair of the Internet and Data Protection practice at law firm SNR Denton LLP, says the liability lines are often blurred and hard to define after a breach. Despite that card fraud usually occurs outside banking institutions' control, banks and credit unions, as the card issuers, usually absorb losses and expenses associated with breach recovery. [...] ___________________________________________________________ Tegatai Managed Colocation: Four Provider Blended Tier-1 Bandwidth, Fortinet Universal Threat Management, Natural Disaster Avoidance, Always-On Power Delivery Network, Cisco Switches, SAS 70 Type II Datacenter. Find peace of mind, Defend your Critical Infrastructure. http://www.tegataiphoenix.com/Received on Mon May 23 2011 - 02:09:21 PDT
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