Group items tagged

The state's highest court told Bergen County yesterday to release 8 million pages of real estate documents -- including mortgage information -- to fulfill a request filed under the state's public records law, but that Social Security numbers included in them must be kept private. The justices also said the company requesting the information should pay the $460,000 it will cost the county to remove the Social Security numbers from records spanning more than two decades. The court unanimously agreed that the documents, requested by a business that wants to sell electronic access to this information, are public records under the state's Open Public Records Act. But it stressed some of the personal information, if released, would hurt residents. "The request was made on behalf of a commercial business planning to catalogue and sell the information by way of an easy-to-search computerized database. Were that to occur, an untold number of citizens would face an increased risk of identity theft," Chief Justice Stuart Rabner wrote for the court. Bergen County officials called the decision a victory for all New Jersey residents concerned about identity theft.

Two Philadelphia law firms have filed class action suits on behalf of all cardholders in the U.S. who had their credit or debit card data stolen in the Heartland Payment System (HPY) data breach. This brings to three the total number of class action lawsuits filed against the Princeton, NJ-based payments processor. The law firm of Berger & Montague filed a class action suit in the U.S. District Court for the District of New Jersey, alleging Heartland's failure to safeguard cardholder data when the company's computer systems were hacked and cardholder data was stolen. Heartland says last year it processed 100 million card transactions per month, but an unknown number of cards were impacted by the breach. The law firm says fraudulent activity has occurred on some of those cards. The law firm alleges that Heartland's security measures and intrusion detection systems were inadequate. "Because of Heartland's inadequate data security, cardholders have had their card information compromised, have been exposed to the risk of fraud, have spent and will spend time to monitor their accounts and dispute fraudulent charges, and have suffered other economic damages," the law firm says in its statement regarding the suit. Berger & Montague were also co-lead counsel in the consumer class action suit brought against TJX Companies, which resulted in a $200 million settlement. The third class action lawsuit filed in February against Heartland comes from Sheller P.C. of Philadelphia, PA. Sheller's suit against Heartland has similar charges against the payment processor. Sheller P.C. also filed its class action lawsuit in the U.S. District Court for the District of New Jersey. Sheller P.C. has also filed a consumer class action suit against RBS WorldPay for its security breach that was made public on Dec. 23, 2008. Previously, Chimicles & Tilellis LLP of Haverford, PA filed suit in the U.S. District Court for the District of New Jersey on behalf of Woodbury, MN resident Alicia Co

Heartland Payment Systems, the sixth-largest payments processor in the U.S., announced Monday that its processing systems were breached in 2008, exposing an undetermined number of consumers to potential fraud. Meanwhile, Forcht Bank, one of the 10 largest banks in Kentucky, told its customers it would begin reissuing 8,500 debit cards after being informed by its own card processor of a possible breach. In the case of Heartland, while the company continues to assess the damages inflicted by the attack, Robert Baldwin, the company's president and CFO, says law enforcement has already noted that the attack against his company is part of a wider cyber fraud operation. "The indication that it is tied to wider cyber fraud operation comes directly from conversations with the Department of Justice and the U.S. Secret Service," Baldwin says. The company says it believes the breach has been contained. Heartland, headquartered in Princeton, NJ, handles approximately 100 million transactions per month, although the number of unique cardholders is much lower. "It is still a question as to the percentage of the data flow they were able to get," Baldwin says, adding he would not speculate on the number of cards potentially exposed. Specifics surrounding when the breach occurred are still being analyzed. But Baldwin says two forensic auditing teams have been working on the breach analysis and investigation since late 2008, after Heartland received the notification from Visa and MasterCard. The investigation began immediately after the credit card companies told Heartland they saw suspicious activity surrounding processed card transactions. Described by Baldwin as "quite a sophisticated attack," he says it has been challenging to discover exactly how it happened.

In New Jersey, and around the country, most doctors still rely on paper records for everything from writing prescriptions to keeping track of their patients' allergies. Only about 1.5 percent of U.S. hospitals have switched to an electronic records systems, and less than 8 percent have even a basic system, according to a recent study by the New England Journal of Medicine.

New Jersey lawmakers are considering new legislation that would require Facebook, MySpace and others to police social networking sites for offensive posts or else face potential consumer fraud lawsuits. But some lawyers say that even if the measure is enacted, it's not likely to have much impact on social networking sites because the federal Communications Decency Act immunizes such sites from lawsuits based on material posted by users. The bill is part of state Attorney General Anne Milgram's Internet safety initiative. "The social networking site safety act is intended to deter cyber-bullying and the misuse of social networking Web sites," the Office of Attorney General said in a statement about the measure. "The bill empowers users of social networking sites to take steps to stop harassment or exploitation." Last year, Milgram garnered headlines by launching a fraud investigation of gossip site JuicyCampus.com -- where users frequently posted insults about college students -- but no legal action resulted. (That site folded last month for financial reasons.) Attempts to rein in cyberbullying might be politically popular, but this type of state effort to regulate global Web sites is also likely to prove useless, say cyber lawyers. "We need to recognize that legislating on the Internet can't be done on a state-by-state basis," said Parry Aftab, an expert on Web safety and cyber-abuse. "We can't have a different law in each state."