FIS Facing Suit Over Data Breach
JACKSONVILLE, Fla. -- Fidelity National Information Services faces a lawsuit stemming from a data breach that was alleged to have been caused by a former employee in its Certegy check verification division.
In early July, the financial services processor announced that it had dismissed an employee after the employee allegedly stole private consumer information from the processor and then sold it to direct marketing firms.
The lawsuit, brought by a consumer who alleges he had data stolen by the employee, was brought as a class action complaint in federal court in Los Angeles.
"Certegy and FIS had a duty to safeguard the confidential data of consumers from any breach, including that of their employees. Once the internal breach became known, it should have been communicated to the public in a timely and adequate manner," said Eric Gibbs, one of the attorneys for the plaintiff. "The failure by these companies to make the internal data breach immediately known exposed consumers to direct marketing campaigns and the risk of unauthorized use of their bank accounts and identity theft."
The case was brought by a Los Angeles, California resident who, prior to the public announcement by Certegy and FIS of the data breach, started noticing an influx of direct marketing and promotional offers as well as phone calls to his home. After subsequently receiving a letter from Certegy informing him that his personal data may have been compromised by one of its employees, the plaintiff engaged a credit monitoring service, according to the plaintiff's lawyers.