Eddie Bauer sued for failing to prevent data breach by enabling EMV chip readers

Just a reminder to businesses that there can be more cost to a data breach than your own recovery. In this case, Veridian Credit Union is suing Eddie Bauer for the cost of reissuing cards and other costs related to the breach. This is a class action suit, so others are likely to join in the party as well. The premise is that Eddie Bauer failed miserably in their security practices, took too long to notify those impacted and that they also failed to implement EMV chip technology.

It is entirely possible that due to the EMV chip liability shift, effective October of 2015, that they will have a good leg to stand on in the case of this lawsuit, especially if these were charges at POS systems in-store and the customers used an EMV-enabled card, but Eddie Bauer had not implemented EMV readers. That could get pretty expensive for them.

Keep this in mind if you operate a business and have not enable EMV chip processing. It could prove very costly in the long run.


Erich Kron is the Security Awareness Advocate at KnowBe4, and has over 20 years’ experience in the medical, aerospace manufacturing and defense fields. He is the former security manager for the US Army 2nd Regional Cyber Center-Western Hemisphere.

One thought to “Eddie Bauer sued for failing to prevent data breach by enabling EMV chip readers”

  1. Keep asking several local businesses when do they plan on going on-line. One said they cannot upgrade. Maybe now they will.

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