Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

Davidson Cos. Sued for Negligence in Data Breach

Lawsuit confirms that companies can be held liable for failing to provide adequate security

Security pros, take heed: If you don't do your job, you may not only be fired -- you may end up in court.

A Billings, Mont., law firm has filed a class-action lawsuit in federal court against Davidson Companies, claiming the company was negligent when it allowed a hacker to penetrate its systems, resulting in a data security breach and the exposure of some 226,000 customer records, according to a report.

The breach, which was revealed in January, occurred when a hacker broke into a Davidson Companies database and obtained the names and Social Security numbers of virtually all of the Montana-based financial services company's clients. Details on how the hacker accessed the database weren't published.

In the past, companies have been held liable for more overt data losses, such as the loss of a laptop or backup tape. Recently, however, companies have been sued for things their IT departments didn't do, alleging that the IT security department's negligence led to a hack. (See FTC Deal Suggests Enterprises Could Be Liable for Poor Security.)

This latest class-action lawsuit alleges "the Davidson Companies failed to comply with the industry standards designed to protect such confidential personal and financial information from theft" and that the company did not provide "adequate safeguards in its storage and handling of its clients’ confidential personal and financial information."

The lawsuit, which doesn't specify a monetary demand, was filed even though the plaintiffs aren't aware of any identity theft resulting from the breach. Attorneys for Davidson Companies said they haven't seen the paperwork and declined comment.

— Tim Wilson, Site Editor, Dark Reading

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
Comments
Newest First  |  Oldest First  |  Threaded View
News
A Startup With NSA Roots Wants Silently Disarming Cyberattacks on the Wire to Become the Norm
Kelly Jackson Higgins, Executive Editor at Dark Reading,  5/11/2021
Edge-DRsplash-10-edge-articles
Cybersecurity: What Is Truly Essential?
Joshua Goldfarb, Director of Product Management at F5,  5/12/2021
Commentary
3 Cybersecurity Myths to Bust
Etay Maor, Sr. Director Security Strategy at Cato Networks,  5/11/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win an Amazon Gift Card! Click Here
Latest Comment: Google Maps is taking "interactive" to a whole new level!
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-18194
PUBLISHED: 2021-05-17
Cross Site Scripting (XSS) in emlog v6.0.0 allows remote attackers to execute arbitrary code by adding a crafted script as a link to a new blog post.
CVE-2020-18195
PUBLISHED: 2021-05-17
Cross Site Request Forgery (CSRF) in Pluck CMS v4.7.9 allows remote attackers to execute arbitrary code and delete a specific article via the component " /admin.php?action=page."
CVE-2020-18198
PUBLISHED: 2021-05-17
Cross Site Request Forgery (CSRF) in Pluck CMS v4.7.9 allows remote attackers to execute arbitrary code and delete specific images via the component " /admin.php?action=images."
CVE-2020-21831
PUBLISHED: 2021-05-17
A heap based buffer overflow vulnerability exists in GNU LibreDWG 0.10 via read_2004_section_handles ../../src/decode.c:2637.
CVE-2020-21842
PUBLISHED: 2021-05-17
A heap based buffer overflow vulnerability exists in GNU LibreDWG 0.10 via read_2004_section_revhistory ../../src/decode.c:3051.