Companies cannot just get away with data breaches. They are answerable to customers and have to compensate. Customers generally file lawsuits when their demands are not met and where private data is stolen.
The following news report is making headlines
The University of Hawaii has agreed to provide two years of credit protection services to settle a class-action lawsuit that involved data breaches that took place between 2009 and 2011
wherein 100,000 students, faculty, alumni and staff between 2009 and 2011, officials and attorneys were involved. This was announced last Thursday.
Apparently the university has denied liability for the breaches. Its spokesperson said it will settle the case by providing two years of credit monitoring and credit restoration services to members who request it. According to the university spokesperson it will continue to “work diligently so that the chance of future data breaches is significantly reduced.”
Data breach details
There were five data breaches in all. It also included the one that took place in 2009 where Social Security numbers, grades and other personal data were posted online for almost a year before being removed from the website. According to University officials a faculty member uploaded files containing the information to an unprotected server, exposing the names, academic performance, disabilities and other information of more than 40,000 students who attended the flagship Manoa campus from 1990 to 1998 and in 2001, by mistake.
Breaches also took place at the West Oahu campus, Kapiolani Community College and Honolulu Community College.
The University’s statement ”We are pleased to settle this case by providing two years of credit monitoring and credit restoration services to those class members who request it. The University continues to work diligently so that the chance of future data breaches is significantly reduced. Given the uncertainties and expense of litigation, the University believes this settlement is in the best interests of the University and its entire ‘ohana.”
The attorneys, Bruce Sherman and Thomas Grande who are representing the class, said
“We have researched more than forty (40) data breaches at colleges and universities across the country. In almost every instance, two years of credit monitoring and fraud restoration were offered to data breach victims,” said Bruce Sherman, one of the attorneys representing the class. “Offering two years of credit monitoring and fraud restoration services to breach victims should be the standard response by any breaching entity in Hawai’i, including government agencies,” Sherman noted.
“The settlement is significant for several reasons,” said Thomas Grande, who also represents the class. “This settlement is the first data breach settlement in Hawai’i and affects almost 100,000 persons,” Grande noted.
“Credit monitoring provides for continuous checking by a credit agency of a class member’s credit file. If there is suspicious activity, the class member is notified immediately and is given assistance to resolve the problem,” Sherman said.
“Credit monitoring services may cost as much as $5 to $15 per month if purchased individually. We are extremely pleased that the University has negotiated a settlement package that provides these services to every class member who wants them,” Grande said.
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Organisations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.
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