Cyber Security and identity theft are arguably the biggest issues in the world today. Someone’s entire life can be destroyed if their identity is stolen. A person who has their identity stolen can suffer immediate and future ramifications if the matter isn’t handled in a timely manner. It is why we have antivirus software to protect our devices and also why we only shop on websites where the sensitive information we input is secure. As information moved into the digital world, this new kind of security became a necessity. New industries have been created to try to prevent identity theft and catch the individuals engaged in that type of criminal activity. As the internet became a bigger part of how the world works, best practices have been established for consumers and businesses engaged in commerce online.
Some of these steps for consumers include browsing and shopping on safe and secure websites. For businesses, it is protecting their customers’ information when transactions take place. However, recent news stories reported the women’s clothing company Donna Karan fighting its customers over alleged violations of the Fair and Accurate Credit Transactions Act. (FACTA) FACTA is an act that contains provisions to assist in the reduction of identity theft. The act enables consumers to take preventative measures to guard their identity. Recently, Law 360 reported Donna Karan is appealing to the Supreme Court about a lawsuit filed by their customers over their alleged lack of diligence allowing full credit card numbers to be displayed on receipts. That mistake can cause severe damage to someone in the wrong hands. The other issue in this matter regarding FACTA could be the culpability of the business and what it may mean for them in terms of lawsuits.
“Consumers have the ability to file litigation against companies that are irresponsible with their personal information” says Roni Dersovitz, Founder of RD Legal Funding. “Litigation Funding allows plaintiffs to pursue lawsuits against well-capitalized defendants that have the ability to overwhelm them in a court of law.”
Huge retailers are currently or have been in litigation for this very issue. Target, Walmart, and others have been sued for reckless endangering their customers’ personal financial information. As the world continues to become digitized, companies may be more susceptible to the possibility of lawsuits from their customers should they not properly protect their sensitive financial information.