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Bank Information Security RSS Syndication Bank Information Security Articles [icon-credit-eligible.gif] Credit Eligible As a BankInfoSecurity.com annual member, this content can be used toward your membership credits and transcript tracking. Click For More Info Two New Suits Filed in Heartland Data Breach Class Action Lawsuits Say Processor Failed to Safeguard Cardholder Data February 16, 2009 - Linda McGlasson, Managing Editor Print Print Email Email Save Save Digg Delicious Reddit Please login or register to save this article. Comment on this article Two Philadelphia law firms have filed class action suits on behalf of all cardholders in the U.S. who had their credit or debit card data stolen in the Heartland Payment System (HPY) data breach. This brings to three the total number of class action lawsuits filed against the Princeton, NJ-based payments processor. The law firm of Berger & Montague filed a class action suit in the U.S. District Court for the District of New Jersey, alleging Heartland's failure to safeguard cardholder data when the company's computer systems were hacked and cardholder data was stolen. Heartland says last year it processed 100 million card transactions per month, but an unknown number of cards were impacted by the breach. The law firm says fraudulent activity has occurred on some of those cards. The law firm alleges that Heartland's security measures and intrusion detection systems were inadequate. "Because of Heartland's inadequate data security, cardholders have had their card information compromised, have been exposed to the risk of fraud, have spent and will spend time to monitor their accounts and dispute fraudulent charges, and have suffered other economic damages," the law firm says in its statement regarding the suit. Berger & Montague were also co-lead counsel in the consumer class action suit brought against TJX Companies, which resulted in a $200 million settlement. The third class action lawsuit filed in February against Heartland comes from Sheller P.C. of Philadelphia, PA. Sheller's suit against Heartland has similar charges against the payment processor. Sheller P.C. also filed its class action lawsuit in the U.S. District Court for the District of New Jersey. Sheller P.C. has also filed a consumer class action suit against RBS WorldPay for its security breach that was made public on Dec. 23, 2008. Previously, Chimicles & Tilellis LLP of Haverford, PA filed suit in the U.S. District Court for the District of New Jersey on behalf of Woodbury, MN resident Alicia Cooper, asserting that Heartland "made unreasonably belated and inaccurate statements concerning the breach." The announcement of these two additional suits being filed on behalf of consumers will only continue to drive talk of a potential class action suit on behalf of the financial institutions that have also faced considerable cost because of the Heartland data breach. To date, there are more than 330 financial institutions that have come forward to say their customers' cards were compromised because of the breach. Some have closed the credit and debit cards of customers because of fraud, and reissued customer cards. In the aftermath of the TJX data breach, where more than 90 million cards were compromised, a group of banks in the Northeast filed a class action suit to recoup the losses that the banks faced when reissuing thousands of cards. Next Related Article: Industry Reaction to Heartland Data Breach Question Question ? What further litigation do you expect to see in this case? Here's your chance to be heard by your peers in the banking and finance industry! Your comments will be kept anonymous. Just enter your comment to the right and click submit to send it to our Editor. Please login if you would like to post a comment on this question. News & Alerts [EMBED] Receive breaking news alerts on security and risk management in the banking industry. [_] Weekly E-News [_] Webinars/Training Invitations + More News Alerts [_] White Papers & Research [_] Interviews & Podcasts [_] Career Advice & Job Alerts [_] Blogs Update Company: _______________________ * Title: _______________________ * Email: _______________________ * Register Already Subscribed? More on this Topic: Recent Popular Research 1. Industry Reaction to Heartland Data Breach 2. Five Banking Institutions Closed by Feds 3. Banking on Customer Awareness - Interview with Debbie Wheeler, CISO of Fifth Third Bank (interview transcript) 4. Heartland Data Breach: List of Victims Grows; First Arrests Made 5. The New Banking Agenda: Interview with John E. McWeeney Jr., Co-President/Co-CEO NJBankers (interview transcript) [314_podcast_137_300x250.gif]-Submit Blogs Related Blog Entries David Schneier Heartland Breach Saps Resources, Time from Institutions "These hundreds of hours that I personally witnessed were put toward trying to make things right for people who did nothing riskier than use their bank card to make a purchase." Read This Post BankInfoSecurity.com is your one-stop portal for the latest news, insights and education on the top information security issues facing U.S. financial institutions today. Through articles, webinars, podcasts, customized training and sponsored content, our team is committed to providing up-to-date information on the security regulations, threats, solutions, training and career trends that most impact banks, credit unions and other related enterprises. Also, please check out our companion site, CUInfoSecurity.com. 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