Who is responsible for data breaches?

Who is responsible for data breaches?

Thursday, January 21, 2016 Totally Gaming
Affinity Gaming is suing Trustwave for more than $100,000

US casino operator Affinity Gaming is suing a cybersecurity firm for more than $100,000 (€93,000) in what is being seen as a landmark case in service provider liability.

Las Vegas-based Affinity filed a lawsuit in relation to the actions of Trustwave, which it hired to investigate and remediate a 2013 data breach that compromised hundreds of thousands of credit cards.

In court papers seen by the Ars Technica website, Affinity claims that Trustwave conducted a “woefully inadequate” investigation before submitted a misleading report to Affinity, with a further breach then taking place.

Affinity - which has 11 properties in the US, including the Silver Sevens in Las Vegas - is suing Trustwave for fraud, fraudulent inducement, constructive fraud, gross negligence, negligent misrepresentation, breach of contract and declaratory judgement.

The company is seeking damages that include the cost of hiring a second information security firm, Mandiant, in April 2014, as well as other outside consultants. Affinity is also seeking damages in relation to the cost from credit card companies and banks that had to issue new credit cards to customers, as well as the cost of publishing notice of a second data breach.

Trustwave was picked from a list of security vendors put forward by Affinity’s insurance company, according to the complaint.

In a statement, a Trustwave spokesperson said: “We dispute and disagree with the allegations in the lawsuit, and we will defend ourselves vigorously in court.”

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