Suit Filed Over Breach
PRIVACY LAW—U.S.May 27, 2011
Infosecurity Magazine reports on a federal lawsuit alleging a lack of security resulted in a recent data breach at Michaels Stores. The suit, which seeks class-action status, alleges the company "violated federal and state law by failing to take reasonable steps to safeguard its customers' personal financial data, including credit and debit card numbers and PINs," the report states. Michaels announced the theft of customer banking information through PIN-pad tampering earlier this month, removing about 7,200 of the units from its stores. The plaintiff in the case had $1,300 stolen from her bank account as a result of the breach, the report states.