Arby's Sued by Another Credit Institution Over Data Breach Response

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Fort McClellan Credit Union is the latest financial institution to file a proposed class action against Arby’s Restaurant Group, Inc. (ARG) over its handling of a massive data breach that went unnoticed by the company from October 2016 through January 2017. The plaintiff alleges that Arby’s erred substantially when it was alerted to the breach by a credit union in January 2017 and then made no announcement publicly acknowledging the hack. According to the complaint, the Arby’s data breach and resulting fallout for customers and financial institutions was entirely avoidable:

“ARG’s data breach at its Arby’s restaurants was the inevitable result of ARG’s inadequate data security measures,” the case contends. “Despite the well-publicized and ever-growing threat of data breaches involving payment card networks and systems, ARG failed to ensure that it maintained adequate data security measures that could have detected and prevented the data breach.”