follow-up: Savvis faces bank lawsuit over CardSystems data breach

[security curmudgeon <jericho () attrition org>]

http://www.finextra.com/fullstory.asp?id=20067

26 May 2009 - 14:24
Savvis faces bank lawsuit over CardSystems data breach

Merrick Bank has launched a multi-million dollar lawsuit against Savvis, 
accusing the vendor of erroneously telling it that CardSystems Solutions 
complied with Visa and MasterCard security regulations less than a year 
before the payment processor's systems were hacked, compromising up to 40 
million credit card accounts.

Atlanta-based CardSystems - now owned by Pay By Touch - identified a 
security incident in May 2005 that exposed more than 40 million credit 
cards to hackers.

The following year the company agreed to settle federal charges that it 
failed to protect the financial data of millions of consumers. The US 
Federal Trade Commission (FTC) said the breach "led to millions of dollars 
in fraudulent purchases".

The FTC concluded CardSystems created unnecessary risks to the information 
by storing it and failed to ensure that its network was secure from 
attacks.

[..]
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