19 March 2018

Community bankers sue Equifax over massive data breach

29 November 2017  |  5900 views  |  0 web spider

The Independent Community Bankers of America (ICBA), which represents 5700 institutions, has filed a lawsuit against Equifax for its recent breach of 145.5 million consumer records and 209,000 payment cards.

The lobby group was joined by two of its members, Bank of Zachary and First State Bank in Barboursville, in asking the District Court for the Northern District of Georgia to require Equifax to compensate all community banks harmed by the breach and to improve its security.

In its third quarter filing earlier this month, the credit rating agency reported that it is facing more than 240 class-action lawsuits from consumers — in addition to suits from shareholders and financial institutions - over the massive data breach.

ICBA’s lawsuit seeks monetary relief for costs incurred by its members in clearing up the mess, including: protective measures to deter customer identity theft, deposit and loan account fraud, customer notification, covering fraudulent transactions, payment card cancellation and replacement, and other expenses.

The suit also calls on the court to direct Equifax to employ adequate security protocols to ensure the protection of personally identifiable information and payment card data.

“ICBA and the nation’s community banks are deeply troubled by the massive and preventable data breach at Equifax and its impact on community banks, consumers, small businesses and the economy,” ICBA president and CEO Camden Fine says. “Today’s lawsuit demands remedial action because Equifax needs to be held accountable for this massive and preventable catastrophic event.”

ICBA’s lawsuit alleges that the breach — in which hackers entered Equifax’s system through a known vulnerability to access names, Social Security numbers, dates of birth, and other information — was the result of a failure to heed warnings from security experts to properly secure its US website. The trade group is also enraged that it waited nearly six weeks to report the break-in to the public.

Sam Vallandingham, president and CEO of First State Bank, comments: “Equifax needs to be held accountable for this catastrophic event to protect the long-term security of our customers,” said

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Equifax profits dive on data breach costs

Equifax profits dive on data breach costs

10 November 2017  |  7169 views  |  0 comments | 5 tweets | 1 linkedin
Equifax CEO quits after massive hack

Equifax CEO quits after massive hack

26 September 2017  |  5191 views  |  0 comments | 7 tweets | 11 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cards

Equifax hack: Visa and Mastercard flag 200k compromised credit cards

15 September 2017  |  16956 views  |  2 comments | 9 tweets | 17 linkedin
Huge Equifax breach hits 143 million consumers

Huge Equifax breach hits 143 million consumers

08 September 2017  |  8857 views  |  2 comments | 5 tweets | 14 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comVisit www.nextgenbanking.co.ukVisit http://info.nice.com

Top topics

Most viewed Most shared
Can banks be a threat to Big Tech?Can banks be a threat to Big Tech?
9053 views comments | 28 tweets | 39 linkedin
Indian fintech sector needs regulatory support to flourishIndian fintech sector needs regulatory sup...
8467 views comments | 9 tweets | 8 linkedin
BIS warns central banks on digital currency issuanceBIS warns central banks on digital currenc...
7240 views comments | 18 tweets | 17 linkedin
Barclays propels Coinbase into Faster PaymentsBarclays propels Coinbase into Faster Paym...
7186 views comments | 15 tweets | 29 linkedin
AI augmenting compliance processesAI augmenting compliance processes
6926 views comments | 3 tweets | 5 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job