IOWA ATTORNEY GENERAL: AG Miller joins $1.5 million settlement with Neiman Marcus over data breach

By Press release submission | Jan 9, 2019

Iowa Attorney General issued the following announcement on Jan. 8.

The Neiman Marcus Group LLC has agreed to pay $1.5 million and implement several policies to resolve an investigation with 43 states and the District of Columbia into the 2013 breach of customer payment card data at 77 Neiman Marcus stores in the United States, Iowa Attorney General Tom Miller said Tuesday.

In January 2014, Neiman Marcus disclosed that payment card data collected at certain of its retail stores had been compromised by an unknown third party. The states' investigation determined that approximately 370,000 payment cards — 268 of which were associated with Iowa consumers — were compromised in the breach, which took place over the course of several months in 2013. At least 9,200 of the payment cards compromised in the breach were used fraudulently.

“Unfortunately, data breaches continue to plague consumers, as we have seen recently with Marriott and Quora,” Miller said. “This agreement includes policies to prevent similar breaches.”

Iowa’s share of the settlement funds is $20,823.89.

In addition to the monetary settlement, Neiman Marcus has agreed to a number of injunctive provisions aimed at preventing similar breaches in the future, including:

Complying with Payment Card Industry Data Security Standard (PCI DSS) requirements;

Maintaining an appropriate system to collect and monitor its network activity, and ensuring logs are regularly reviewed and monitored;

Maintaining working agreements with two, separate, qualified Payment Card Industry forensic investigators;

Updating all software associated with maintaining and safeguarding personal information, and creating written plans for replacement or maintenance of software that is reaching its end-of-life or end-of-support date;

Implementing appropriate steps to review industry-accepted payment security technologies relevant to the company's business; and

Devaluing payment card information, using technologies like encryption and tokenization, to obfuscate payment card data.

Original source can be found here.

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