Morgan & Morgan Investigating Neiman Marcus Data Breach

The attorneys at Morgan & Morgan are investigating claims on behalf of those who were affected by the Neiman Marcus data breach. In January 2014, the luxury retailer announced that it had been the victim of a breach that could potentially affect more than 1.1 million customers. The company has since confirmed that more than 9,000 Visa, MasterCard and Discovery credit cards affected by the breach have been fraudulently used.

In January 2014, the security news and investigation blog Krebs on Security reported that “sources in the financial industry” witnessed an increased number of fraudulent charges on credit or debit cards previously used at the upscale retailer Neiman Marcus. In a notice on its website, the retailer confirmed that its systems had been infiltrated with malicious software, also known as malware, which was designed to “scrape” or collect payment card data when shoppers swiped their cards at point-of-sale terminals. By collecting this payment data, criminals could potentially create counterfeit payment cards to make purchases or withdraw cash.

Neiman Marcus, which also owns Bergdorf Goodman and Last Call outlet stores, said that 1.1 million customers’ payment card data may have been vulnerable between July 16 and October 30, 2013. Following the attack, Visa, MasterCard and Discover reported that 9,200 payment cards were already used for unauthorized transactions.

The retailer is offering one free year of credit monitoring for anyone who may have been affected by the breach and has contacted all those who shopped online or in stores during the affected period; however, suspicions have been raised by some who believe the breach may have begun earlier than July 2013, as the company’s free credit monitoring offer is extended to those who shopped in its stores as early as January 2013.

While the criminals who infiltrated Neiman Marcus’ systems seem to have used the same malware as that which was used in the Target data breach, investigators have not revealed whether the same criminals were behind both attacks, The New York Times reported. The Target data breach, which potentially put more than 70 million shoppers at risk for debit or credit card fraud, is the subject of several class action lawsuits alleging that the retailer failed to adequately protect its customers from unauthorized account access.

At Morgan & Morgan, our attorneys are currently investigating whether Neiman Marcus data breach victims may have similar legal recourse and would like to hear from those affected by the attack. Contact us today by filling out our free case review form for more information on your potential legal rights.