Target Accused of Non-Compliance in CU Suit
The 28,000-member, $211 million Alabama State Employees Credit Union alleges retailer Target was not compliant with card industry data security standards during a major incursion in November and December that led to the theft of data from millions of credit and debit cards. ASECU made the claim in court as the first financial institution to file suit to recoup its losses from the card data breach.
“Among other things, merchants are prohibited from storing unprotected cardholder information,” the credit union observed in its class-action complaint. “The stolen data includes among other things, customer names, credit and debit card numbers, card expiration dates and the three-digit security codes located on the backs of cards. There is no legitimate reason for Target to keep all of this information stored electronically.”