From the article: snip -->
However, Spitzer of the MBA said that banks still bore the brunt of security breaches
at retailers because they have to pay to reissue cards to customers and absorb the
financial losses from unauthorized account withdrawals. Small banks and credit unions
often have trouble absorbing those costs, though they are not at fault in the breach
itself, Spitzer said.
Spitzer took issue with the delay between the time TJX learned of the breach and when
his organization and banks were notified as well as with Visa's policy of keeping the
source of the breach a secret.
"We would have liked to know sooner," he said.
MBA is working with state and federal lawmakers to hold card companies and retailers
more accountable for the costs of security lapses, he said.----------------------------
Found this --->
TJX being sued over ID thefts; One plaintiff says card had 110 fraudulent transactions
By STEVE ADAMS
The Patriot Ledger
Wed., June 13, 2007http://www.patriotledger.com/articles/2007/02/17/business/biz02.txt South Shore shoppers at risk of identity theft because of a security breach at TJX Companies
are signing up for a growing list of lawsuits against the Framingham-based retail chain.
Pembroke resident Robert Mann, a frequent shopper at the company’s TJ Maxx and HomeGoods stores,
discovered 110 fraudulent transactions totaling several thousand dollars on his debit card between
Jan. 24 and Jan. 27, according to a lawsuit filed on Thursday in U.S. District Court in Boston.
Mann is one of seven plaintiffs in the latest lawsuit, which is one of several suits against TJX
for which plaintiffs are seeking class-action status. TJX Companies, which also operates the
Marshalls and A.J. Wright chains, announced last month that consumers’ credit card data may have
been stolen in a security breach that could reach back as far as 2003.
The latest suit claims TJX acted negligently by storing unprotected credit card holders’
information and failing to install computer firewalls to protect sensitive financial databases.
It seeks unspecified damages on behalf of a group of plaintiffs who suffered financial losses,
inconveniences and the risk of future identity theft.
After discovering the phony charges on his account, Mann deactivated the card and took two unpaid
days off from work to dispute the charges, which were eventually reversed by the bank. He canceled
his debit card and other credit cards, relying on cash transactions for a week, the lawsuit states.
Also named as a plaintiff in the suit is Mark Parrish of Weymouth, who ordered a new Visa debit
card after TJX notified him that his account was one of those affected by the security breach.
Parrish canceled the card and was inconvenienced because his PayPal account and association dues
had been linked to his old card.
Other plaintiffs named in the latest lawsuit reported spending significant time setting up new
automatic payments to utility companies and health clubs, and being charged penalties for missed
payments. After canceling their existing credit and debit cards, they had to carry large sums of
cash and visit bank branches during the business day to make withdrawals.
TJX Companies has advised customers who may be affected by the security breach to call one of the
three major credit bureaus - Equifax, Experion or TransUnion - and place a fraud alert on their
credit reports.
A ‘‘relatively small number’’ of customers’ names, addresses and driver’s license numbers were
stolen, TJX says. The information was collected when customers returned merchandise without
receipts, and those customers could be subject to the biggest risk of identity theft.
A TJX spokeswoman declined to comment on the suit, saying the company does not discuss pending litigation.
Copyright 2007 The Patriot Ledger
Transmitted Saturday, February 17, 2007
Thanks for asking that!! ;) I didn't even think to look into that!!!