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Zappos, Amazon Sued Over Data Breach

Lawsuit against shoe retailer alleges security negligence, seeks millions in compensatory and exemplary damages

Shoe retailer Zappos.com and its parent company, Amazon.com, are being sued for exposing customer data in a breach affecting some 24 million customers.

According to an Associated Press report on the lawsuit against Zappos, a Texas woman has taken the lead in the Kentucky lawsuit, alleging that she and millions of other customers were harmed by the release of personal account information.

Officials representing Zappos in Nevada and parent company Amazon in Seattle declined to comment to AP on the lawsuit filed in U.S. District Court in Louisville.

Zappos alerted employees and customers by email Sunday that names, phone numbers, and email addresses of its customers may have been accessed in a hacker attack. The company said customers' credit card and payment information weren't stolen, according to AP.

Zappos urged customers to reset passwords to accounts and any other websites where they use similar passwords.

Zappos said the hacker gained access to its internal network and systems through one of the company's servers in Kentucky.

Attorneys for plaintiff Theresa D. Stevens of Beaumont, Texas, are seeking class-action status on behalf of 24 million customers for what the lawsuit alleges was a violation of the federal Fair Credit Reporting Act.

The civil negligence lawsuit seeks unspecified millions of dollars in compensatory and exemplary damages for emotional distress and loss of privacy, along with a court order for the company to pay for customer credit monitoring and identity theft insurance and periodic audits to ensure customer data is secure, the AP report says.

Have a comment on this story? Please click "Comment" 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

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Georgeken
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Georgeken,
User Rank: Apprentice
2/10/2012 | 7:23:52 AM
re: Zappos, Amazon Sued Over Data Breach
Both Zappos and amazon are world wide famous e-shopping portals but it is not good they are aware of the hacker's operations properly.
GSERV021
50%
50%
GSERV021,
User Rank: Apprentice
1/25/2012 | 9:19:12 PM
re: Zappos, Amazon Sued Over Data Breach
The Zappos hackers seem to have accessed some of the information stored in retailer's customer profiles. We don't know whether or not the criminals have been able to actually access the customers' accounts, as we don't know if they could have retrieved the passwords. Yet, even if they did, that wouldn't have done them much good. What could have happened? Let's say that they attempted to place an order. Well, even if it did go through, which is unlikely, it would've been disputed by the cardholder who would have been reimbursed for any possible losses. Aside from that, any card data that may have been stored in a hacked profile would have been perfectly unusable, because it only shows the last 4 digits of the account number. The bottom line is that, as the data breach was immediately discovered and the customer passwords reset, the hackers would have been left with such information that they could have found on Yellow Pages, with much less trouble and for free. For a more detailed analysis: http://blog.unibulmerchantserv....
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