Risk
4/7/2010
03:56 PM
Connect Directly
RSS
E-Mail
50%
50%

Customers Sue Countrywide Financial Over Theft And Sale Of Personal Data

Class-action suit seeks $20 million as well as answers about company's involvement

Customers of Countrywide Financial have filed a class-action lawsuit over the 2008 data breach that enabled company insiders to steal and sell their personal information.

According to a Courthouse News Service report, the class-action lawsuit on behalf of 16 plaintiffs seeks $20 million in damages, plus punitive damages.

The data theft, originally attributed to a single employee working over a two-year-period, exposed tens of thousands of customer records.

The lawsuit alleges that Countrywide Financial employees stole and sold "tens of thousands, or millions" of customers' personal financial information, according to the news report.

The suit claims the defendants do not dispute that customers' private financial information was disseminated. It seeks to find out "whether the dissemination was intended as a plan or scheme, or was intentional; [and] whether any of the defendants was simply aiding and abetting, rather than an architect of the plan to disseminate the personal information."

The lawsuit also claims that the defendants were slow to admit the massive breaches of confidentiality, and offered little help when they finally did admit it. The defendants delayed disclosing the breaches to "gain time and money to extricate defendants from the financial stress [they] had created," the claim states.

The plaintiffs say their identities have been stolen or compromised, their credit histories have been "shattered," and they've been unable to obtain loans, lines of credit, or real estate financing. "Countrywide delayed several months before informing their customers," the complaint states. "Finally, Countrywide informed only certain of their customers by letter and offered in settlement to refer the customers/borrowers to counseling, when it was Countrywide that needed to review and repair its internal procedures."

Have a comment on this story? Please click "Discuss" below. If you'd like to contact Dark Reading's editors directly, send us a message. Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-3861
Published: 2014-09-02
Cross-site scripting (XSS) vulnerability in CDA.xsl in HL7 C-CDA 1.1 and earlier allows remote attackers to inject arbitrary web script or HTML via a crafted reference element within a nonXMLBody element.

CVE-2014-3862
Published: 2014-09-02
CDA.xsl in HL7 C-CDA 1.1 and earlier allows remote attackers to discover potentially sensitive URLs via a crafted reference element that triggers creation of an IMG element with an arbitrary URL in its SRC attribute, leading to information disclosure in a Referer log.

CVE-2014-5076
Published: 2014-09-02
The La Banque Postale application before 3.2.6 for Android does not prevent the launching of an activity by a component of another application, which allows attackers to obtain sensitive cached banking information via crafted intents, as demonstrated by the drozer framework.

CVE-2014-5452
Published: 2014-09-02
CDA.xsl in HL7 C-CDA 1.1 and earlier does not anticipate the possibility of invalid C-CDA documents with crafted XML attributes, which allows remote attackers to conduct XSS attacks via a document containing a table that is improperly handled during unrestricted xsl:copy operations.

CVE-2014-6041
Published: 2014-09-02
The Android Browser application 4.2.1 on Android allows remote attackers to bypass the Same Origin Policy via a crafted attribute containing a \u0000 character, as demonstrated by an onclick="window.open('\u0000javascript: sequence.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
This episode of Dark Reading Radio looks at infosec security from the big enterprise POV with interviews featuring Ron Plesco, Cyber Investigations, Intelligence & Analytics at KPMG; and Chris Inglis & Chris Bell of Securonix.