Customer Identity Theft & Fraud: What Businesses Can Learn

lessons learned_ganowI recently wrote a series of episodes in what I called a Privacy Miniseries on LinkedIn in which I shared the true story of my best friend “Michelle’s” experience with her wallet being stolen and the ensuing saga that involved identity theft, fraud, and, in an interesting twist, my best friend taking an active role that lead to the arrest and confession of the thief. The following is the series “Epilogue,” which includes lessons learned and take-aways for businesses in dealing with such customer experiences.
While Michelle’s story is compelling and of personal nature, there are several take-aways for businesses to consider as well. The reality today is that information security and attempts to bypass that security are here to stay. Forward-thinking businesses accept this and will remain diligent in not only seeking opportunities to continually improve their data security position, but also using these situations as opportunities to further distinguish their businesses from that of their competitors.

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Posted by Scot Ganow
Data Security
September 23, 2015

Neiman Marcus Offers Clearance Sale: Suffer One Data Breach and Get Ground-Breaking Caselaw for FREE!

cybersecurity_neiman-marcusNeiman Marcus has made history as the standard for luxury retail.  But it is also making history as a watershed case in data breach class action litigation.   On January 10, 2014, Neiman Marcus announced that between July 16, 2013 and October 30, 2013, its customers’ credit card information was exposed after hackers infiltrated the retailer’s data systems. Neiman Marcus informed its customers that data from 350,000 cards were potentially exposed, and about 9,200 of the 350,000 cards were used fraudulently. In addition to notifying all customers who had shopped in its stores between January 2013 and January 2014 of the data breach, Neiman Marcus also offered the customers one year of free credit monitoring and identity theft protection.

Several Neiman Marcus customers filed a class action complaint on behalf of all those whose credit card information had been exposed by the breach. The complaint alleged claims of negligence, invasion of privacy, breach of implied contract, unjust enrichment, and violations of multiple state data breach laws. Neiman Marcus moved to dismiss the complaint on the grounds that Plaintiffs could not allege any actual, present injuries and therefore lacked standing to pursue their claims under Article III of the U.S. constitution.

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Posted by Zach Heck
Data Security
September 17, 2015

Recent Commentary on Cybersecurity by Ron Raether and Scot Ganow

cybersecurityOn September 2, FIC partner Ron Raether spoke at the Cyber Security Forum hosted by the Cincinnati Business Courier.  Ron and fellow FIC attorney Scot Ganow regularly speak and write on the latest issues affecting cybersecurity, including breach response, data privacy, and data governance.  Check out some of their latest commentary at the following links:

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Posted by Christopher Hollon
Data Security
September 2, 2015

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