Bank's liability for identity theft

[justadope]

What is the name of your state? Arizona

A bank with corporate offices in Texas has leaked customer information (from new account openings), probably by a crooked employee, that has resulted in fraudulent credit card openings and fraudulent credit card usage. Have the courts settled on whether a business is legally responsible for safeguarding such information and what their liability is should they fail to safeguard it?

I don't believe the bank is yet aware of the magnitude of their problem as crooks just began exploiting the information within the past two weeks. Attempts have been made to notify the bank, they have yet to respond.

 

[Debt Guy]

OK. Looks like your question is not hitting a nerve with most people.

Why are you asking this question? Is it a theoretical question or have you suffered a loss?

Yes, the bank is responsible for protecting customer information. A bank has a regulatory responsibility and a responsibility to their clients. The regulatory agency (FDIC, OCC, etc) will take care of the compliance side. A consumer's recourse is through the courts. However, it is possible that the state Attorney General might get involved to protect consumers.

As a general principle, a consumer would have a claim against the bank to the extent the consumer was damaged. In other words, you must have suffered a damage in order to sue for compensation. You cannot sue the bank for being stupid. You can sue them if they cost you money.