Banks sue in face of data breaches

About 300 banks, many of them community banks, have filed a class-action lawsuit in U.S. District Court in Boston against TJX, a company from whom 45.7 million credit and debit cardholders were stolen. The banks are making a strong point. They want data brokers and retailers to get as serious about security as they are. These sorts of suits are likely going to become more common. The rationale is understandable, as data breaches can leave banks holding a huge bill. If cards are exposed, the bank will replace them at no charge. If fraud is present, banks return the money. For small banks, this could end up being a significant cost. There are some proposals in Congress that would force retailers to tighten up on information security as well.

For more:
- here's an article from U.S. Banker
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