Mon, Oct 9, 2017
CUNA filed its lawsuit last week against Equifax, a suit brought in the wake of a data breach resulting in hackers accessing information on 145.5 million consumers and payment card data of more than 200,000 consumers.
During a phone call with CUNA members last week, Joseph Guglielmo, attorney with Scott and Scott, who is representing CUNA in its lawsuit, outlined a few things credit unions should be aware of if they decide to get involved as a named plaintiff. Becoming a plaintiff means retaining a law firm to file on your behalf. The credit union would then need to be involved on a periodic basis at key junctures in the case.
The class-action lawsuit was filed in a Georgia District Court against Equifax, alleging that credit unions and other financial institutions have suffered and will continue to suffer financial losses and increased data security risks as a result of the breach.
The compliant provides more detail about the expenses CUNA thinks credit unions will have to bear.
“These costs include, but are not limited to, canceling and reissuing an untold number of compromised credit and debit cards, reimbursing customers for fraudulent charges, increasing fraudulent activity monitoring, taking appropriate action to mitigate the risk of identity theft and fraudulent loans and other banking activity, sustaining reputational harm and notifying customers of potential fraudulent activity.”
“Equifax’s data security deficiencies were so significant that, even after hackers entered its systems, their activities went undetected for at least two months, despite red flags that should have caused Equifax to discover their presence and thwart, or at least minimize, the damage.”