Credit/Debit Cards, Cyber Security

Consumer rights law firm investigates Michaels data breach

Hagens BermanConsumer rights law firm Hagens Berman Sobol Shapiro announced last week that it has launched an investigation into a network breach at craft and hobby retailer Michaels that resulted in a loss of customer data.

Michaels announced late last month that attackers may have breached their point-of-sale systems. According to the firm, however, the retail chain knew of its security vulnerabilities but ignored warnings from cybersecurity expert Neal Krawetz.

Hagens Berman alleges that Michaels knew of and downloaded a security paper published by Krawetz in 2007, which alerted retailers to the risk of POS cyberattacks.

“Logs from Dr. Krawetz’s website indicate that someone at a Michaels internet domain address downloaded his white paper on August 13, 2008, and again on November 11, 2013,” Tom Loeser, a Hagens Berman partner and former federal prosecutor at the U.S. Attorney’s Office in Los Angeles, said. “Much like Target, Michaels’ awareness of the vulnerability of its POS systems to cyber-attack and data breach should have prompted it to take measures to prevent, or at least detect such an attack and breach.”

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