Credit/Debit Cards, Cyber Security

Consumer rights law firm launches investigation into Neiman Marcus data breach

Neiman MarcusConsumer rights law firm Hagens Berman Sobol Shapiro is currently investigating a data breach at Neiman Marcus after the retailer announced earlier this month that over one million debit and credit cards may have been compromised.

On Jan. 13, Neiman Marcus said its point-of-sale systems and more than 1.1 million debit and credit cards may have been compromised between July and October 2013 after hackers installed malicious software on its systems and stole customer card information.

The law firm is currently looking into whether the retailer was negligent and may have violated consumer protection laws by failing to secure its data systems and protect consumer information.

“This breach lasted more than three months, far longer than the Target breach, and in all that time, it appears Neiman Marcus never even suspected its systems were compromised,” Tom Loeser, a Hagens Berman partner and former federal prosecutor in the Cyber and Intellectual Property Crimes Section of the U.S. Attorney’s Office in Los Angeles, said. “We think that Neiman Marcus fundamentally failed not just to stop the breach, but more importantly to monitor its systems and spot the problem. Instead, we believe that Neiman Marcus only discovered that its systems were compromised after government agents alerted it to look for specific markers following the Target breach.”

Hagens Berman has already filed a proposed class-action suit against Target after discovering the retailer and several others were allegedly warned of POS vulnerabilities in a 2007 white paper by security expert Neal Krawetz.

The Target suit alleges the nation’s second largest retailer failed to take necessary steps to safeguard customers’ card information and failed to detect and halt the data breach in a timely manner.

Comments are closed.