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Data breach

Neiman Marcus agrees to $1.5 million settlement for 2013 data breach.

On January 8, 2019, Texas Attorney General Ken Paxton announced a $1.5 million settlement with The Neiman Marcus Group LLC, a luxury department store chain in the U.S., over a data breach that affected 65,644 customers in 2013.

What happened?

The breach exposed customer card data used at 77 Neiman Marcus stores nationwide. About 350,000 payment cards were accessed by unknown third parties unlawfully from July 16, 2013 to October 30, 2013, and at least 9,200 cards were used fraudulently. Neiman Marcus said that malware had been quietly placed in its systems to steal card data during the specified period.

Under the terms of the settlement, Neiman Marcus will maintain reasonable procedures to protect its customers’ personal information and prevent future attacks by hackers. Neiman Marcus is conducting a full review of all its payment card information systems, as well as a vulnerability assessment with the payment card brands, the company’s merchant processor, and a leading forensics firm. Besides that, Neiman Marcus is reviewing and reinforcing its intrusion detection systems, firewalls, and other security tools.

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