Luxury department store to pay $15,523 to South Dakota for data breach

PIERRE, S.D. — Neiman Marcus, a luxury department store chain, has reached a $1.5 million settlement in a multi-state lawsuit alleging it was negligent in regards to a 2013 security breach.

The investigation was initiated by 43 states, including South Dakota, and questioned whether the company had done enough to protect consumer data. It also accused Neiman Marcus of not notifying customers soon enough after the breach.

The intrusion first occurred in July of 2013 and involved the same malware that was used to infiltrate Target’s security system that year.

The unknown cyber criminals responsible for the incursion were able to collect financial data on approximately 370,000 payment cards, including 64 cards that were associated with South Dakota residents.

The information on 9,200 of the compromised cards was then used fraudulently.

It was indicated that Neiman Marcus learned about the security breach as early as December of 2013, but didn’t notify customers until January of 2014, waiting roughly a month.

While the retailer argued that they alerted customers as soon as the breach was actually confirmed, others have speculated that Neiman Marcus waited to tell customers in order to maintain their sales through the holiday season.

Additionally, the security breach went on for several months before it was detected, raising concerns about the quality of the retailer’s security systems.

As part of the settlement, South Dakota will receive $15,523. 66. In addition, Neiman Marcus has agreed to enhance its security provisions.

According to Attorney General Jason Ravnsborg the agreement will help protect consumers in the future.

“The people of South Dakota work too hard to have their money taken from them.” stated Ravnsborg, “I am excited that the protections to be implemented under this settlement will assist in keeping South Dakotans safe going forward.”

Consumers who have questions about the settlement can contact the Attorney General’s Office of Consumer Protection by calling 1-800-300-1986 or emailing consumerhelp@state.sd.us.

 

 

Categories: National News, South Dakota News