NAID : News : Auditor Sued Over Data Breach Incident

According to an article by Kim Zetter, appearing on the website of Wired News on June 2nd, for the first time a financial institution is suing an auditor for verifying that a third party card processor was secure prior to a data breach caused by the same service provider. The third party processor’s data breach released over a quarter of a million credit card numbers and put almost 40 million other credit card numbers at risk. As a result of the breach by the third party service provider, the financial institution that brought the suit must notify its customers of the incident.

The article further describes the ramifications of an anticipated trend of suits where third parties fail to provide the security they claim to provide as well as the risk of such suits against organizations that verify their security.