Security firm Trustwave says Target data breach claims baseless

Sun Mar 30, 2014 8:17am IST

A view of the sign outside the Target store in Westminster, Colorado, February 26, 2014. REUTERS/Rick Wilking/Files

A view of the sign outside the Target store in Westminster, Colorado, February 26, 2014.

Credit: Reuters/Rick Wilking/Files

Related Topics

Stocks

   
Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

(Reuters) - Trustwave Holdings Inc, a credit-card security firm that has been sued along with Target Corp (TGT.N) over a sweeping data breach, said on Saturday it did not process cardholder data for the retailer or handle Target's data security as a lawsuit alleges.

In a letter to customers and business partners, Trustwave Chief Executive Robert McCullen said the company's connection to Target was not what had been portrayed in a suit filed last Monday by two banks seeking at least $5 million in damages.

"Contrary to the misstated allegations in the plaintiffs' complaints, Target did not outsource its data security or IT obligations to Trustwave. Trustwave did not monitor Target's network, nor did Trustwave process cardholder data for Target," said the letter from McCullen posted on the company's website.

"These claims against Trustwave are without merit," the letter added.

The lawsuit filed in Chicago federal court by Trustmark National Bank and Green Bank NA accuses Target and Trustwave of failing to properly secure customer data, enabling the theft of about 40 million payment card records plus 70 million other records, including addresses and phone numbers.

The banks said they lost money from alerting customers to the breach, reimbursing fraudulent charges and reissuing cards. Those losses could increase, they said, if criminals ultimately use several million stolen cards as some analysts project.

While the complaint seeks unspecified damages of at least $5 million, New York-based Trustmark and Houston-based Green Bank said losses could top $1 billion for card issuers they hope to represent in a class action, and $18 billion for banks and retailers combined.

Target, the no. 3 U.S. retailer, already faces dozen of lawsuits over the breach, but the lawsuit filed on Monday appears to be the first to focus on Trustwave, a privately held Chicago-based provider of credit-card security services.

The data breach occurred from November 27, the big post-Thanksgiving shopping day known as Black Friday, to about December 15.

The case is Trustmark National Bank et al v. Target Corp et al, U.S. District Court, Northern District of Illinois, No. 14-02069.

(Reporting by Jonathan Stempel in New York, and Jim Finkle in Boston; Writing by Carey Gillam in Kansas City; Editing by Peter Cooney)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Hacking

TECH SHOWCASE

Samsung Results

Samsung Results

Samsung downbeat on Q3 prospects as profits slide.  Full Article 

Under Scrutiny

Under Scrutiny

Factbox - Google under European regulatory spotlight.  Full Article 

Internet Effort

Internet Effort

Facebook mobile app to offer free, limited Internet in Zambia.  Full Article 

Reducing Workforce

Reducing Workforce

Apple to lay off about 200 people at Beats - Bloomberg.  Full Article 

New Offering

New Offering

Amazon quickens push into tough local services market.  Full Article 

Drone Pioneer

Drone Pioneer

China's drone king says the revolution depends on regulators.  Video 

Telemedicine Service

Telemedicine Service

Khosla-backed startup hopes to bring doctors to patients' mobiles.  Full Article 

Sony Earnings

Sony Earnings

Sony warns smartphone weakness will brake profit progress after Q1 surge.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage