Target and Trustwave Sued Over Credit Card Breach

jfruh (300774) writes "Security vendors like Trustwave can make big bucks when major companies decide they don't have the internal resources to handle their cybersecurity needs. Unfortunately, when taking on security chores, you also take on security liabilities. In the wake of Target's massive credit card security breach, both Target and Trustwave are now on the receiving end of a class action lawsuit, in part backed by banks that had to issue thousands of new credit cards." The filing, and a bit more from El Reg: "It's against Target, however, that the most serious allegations are levelled. The class action led by Trustmark National Bank and Green Bank, say the retailer should not have allowed an outside contractor the access to its network that brought about the breach, and that it violated federal and state laws in storing the credit card data on its network."

Comments

Re:Banks are responsible too

[way2trivial]

Not precisely correct.

Chip & pin is coming, it's not mandatory on merchants (yet) but if fraud is indicated and the merchant failed to have a chip terminal, and the customer has a chipped card the merchant will lose the chargeback automatically.

Liability shift, will now be on one of two entities.
The merchant, for not having the terminal, or the consumer, for not protecting their pin.

the liability also shifts almost 100% OFF the card issuing bank....
(the real reason)