With 2014 dubbed the “year of the data breach,” questions loom over corporations for 2015: When will it happen to us? Are our security measures adequate? Will we be prepared for the fallout? The law is hurrying to keep up with the rapid pace of these leaks and attacks, and it is difficult to predict how data breach scenarios will play out in the future. Here is a snapshot of what we might expect to see this year in this area of the law.
Newfound Support for Financial Institutions in the Courts
In point-of-sale data breach cases, the kinds that affected Home Depot, Target and Staples last year, much of the financial damage falls on the banks involved, which spend millions, even billions, reimbursing fraudulent charges and issuing new credit and debit cards to affected consumers. Historically, banks and credit unions have found little success pursuing retailers for such costs, because courts generally rule that they are not owed any duty of care by the retailer. A recent ruling by U.S. District Judge Paul Magnuson of the District of Minnesota in the Target litigation may signal a change favorable to financial institutions.
