Heartland Suit Alleges “Inadequate” Security
Source: Law Offices of Howard G. Smith
The investigation focuses on allegations that statements made by the Company during that period were false and misleading and failed to disclose or indicate, among other things, that: (1) the Company’s safety and security measures designed to protect consumers’ financial records and data from security breaches were inadequate and ineffective; (2) the Company faced liabilities associated with a breach of the Company’s payment processing network and increasing costs associated with implementing appropriate security measures; and (3) as a result of a breach in the Company’s payment processing network, the Company was at risk of losing customers.
Heartland CEO Now Under SEC Investigation
By Anthony M. Freed, Information-Security-Resources.com Financial Editor
“The investigation may relate to stock trades made by Heartland Chairman and CEO Robert Carr after Visa notified Heartland of suspicious activity on Oct. 28, 2008. According to insider trade filings, Carr sold just under US$8 million worth of stock between Oct. 29 and the day the breach was disclosed. Heartland’s stock was trading in the $15-to-$20 range for most of these transactions, but it dropped following the breach disclosure. It closed Wednesday at $5.49.”
ISR News: Heartland Braces For A Fight
Excerpts From SearchFinancialSecurity.com
“We intend to vigorously defend any such claims and we believe we have meritorious defenses to those claims that have been asserted to date,” Carr said. “At this time we do not have information that would enable us to reasonably estimate the amount of losses we might incur in connection with such claims.”
Undisclosed Breach Threatens Consumers
Story By DataLossDB.org
What we still don’t know is what processor has been breached. According to the aforementioned article, and as has been confirmed by our sources, VISA and Mastercard are refusing to disclose which acquirer processor had the breach, as the organization hasn’t released a public statement on it yet themselves.
More Than 500 Banks Hurt By Breach
Heartland Payment Systems Breach Updates:
If your institution has been affected in the Heartland breach and you are not on this list, please send an email to editor@bankinfosecurity.com. Include your name, email, and a phone number where you may be contacted for verification. Following is the latest up-to-date list of institutions impacted by the Heartland breach and - where available - the total number of cards compromised:
McAfee Report: Our Unsecured Economies
By Laura Wilson
In 2000, I began serious work on protecting intellectual property, sensitive systems, and consumer information for technology and information companies. Starting in 2006, I focused on protecting this stuff within the financial industry. Based on my work with several of the largest financial companies in the world, and with a multitude of their vendors and outsourcers, the threat in the arenas of finance, corporate assets, litigation, and actual physical security cannot be overstated.
Another Payment Card Processor Hacked
By Anthony M. Freed, Information-Security-Resources.com Financial Editor
Banks around the country are reportedly receiving warnings, and perhaps even new lists of cards to replace. This is apparently regarding another credit card processor, unrelated to Heartland Payment Systems, having a significant breach.
Businesses Lose $1 Trillion to Cyber-Crime
“This report is a wake-up call because the current economic crisis is poised to create a global meltdown in vital information. Increased pressures on firms to reduce spending and cut staffing have led to more porous defenses and increased opportunity for crime. Companies need to stop looking at security as a cost center but as a business enabler.”
