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Second Lawsuit Filed in PIN Pad Skimming Scam

DATA LOSS—U.S.

June 1, 2011

On Friday, in a U.S. District Court in Illinois, a Michaels Stores customer filed a lawsuit alleging the company failed "to ensure the physical security of its checkout line terminals and test its payment processing equipment to protect customer data," reports the Chicago Tribune. The suit, which seeks class-action status, also claims that the company did not provide "timely and clear notification" to customers about the breach. The plaintiff reported to the police that two unauthorized transactions appeared on her bank account statement totaling more than $1,000. It is the second breach-related suit filed against Michaels. (Editor's note: The IAPP will host a Web conference on June 23 from 1 - 2:30 p.m. on privacy-related class-action lawsuits and a recent and potentially instructive Supreme Court decision in this area. Watch for more details soon.)
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