ISR News: WorldPay Facing Class Action
Excerpts From SecurityFocus.com’s Robert Lemos
RBS WorldPay Facing Class Action Lawsuit Over Breach (February 6, 2009) Law firms in Pennsylvania, Georgia and Washington DC have filed a class action lawsuit against payment processor RBS WorldPay.
A security breach of the company’s computer network led to a worldwide ATM scam in which people armed with phony payment cards made US $9 million in fraudulent ATM withdrawals.
The withdrawals occurred on November 8, 2008 in 49 cities around the world; RBS WorldPay learned two days later that the information used to create the phony cards came from its computer network. Customers were notified of the breach on December 23, 2008.
Comments by Anthony M. Freed, Information-Security-Resources.com Financial Editor:
We will continue to see mounting costs associated with these ever bigger and more brash unauthorized breaches of personal financial data and financial institution’s data systems over the next five years.
These costs are ultimately borne by the stakeholders, whether they be the actual shareholder in these companies whose stock value is diminished due to breaches, or if they are the consumers who end up with the final bill in the form higher costs.
In addition to the obvious threat to market stability, the financial debacle has the added element of national and global security concerns. We believe this is the next national security, shareholder derivative, D&O liability, regulatory, consumer product safety, and class-action issue.
Anthony is a researcher, analyst and freelance writer who worked as a consultant to senior members of product development, secondary, and capital markets from the largest financial institutions in the country during the height of the credit bubble. Anthony’s work is featured by leading Internet publishers including Reuters, The Chicago Sun-Times, Business Week’s Business Exchange, Seeking Alpha, and ML-Implode.
Filed under: Breach, Class Action Lawsuit, D&O Liability, Financial, ISR News, Insider Threat, PCI, Sarbanes-Oxley, Uncategorized, identity-theft, malware, privacy
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Wed, 11th Feb 2009 9:23 pm
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