A group of banks were allowed to proceed with their class action lawsuit against Target Corporation over losses they incurred from issuing new credit and debit cards and reimbursing fraudulent charges that resulted from the massive data breach at the retailer last year.  In the case “In re: Target Corporation Customer Data Security Breach Litigation”, Target sought to have the case dismissed, but a U.S. District Court Judge determined that the retailer played a key role in allowing hackers to gain access to its system.

As large scale breaches become more prevalent, banks will likely push back against the accepted practice for them to cover both the costs of fraudulent charges as well as consumer remediation efforts.  The size of the Target breach, in conjunction with other recent, large-scale breeches, may make it difficult for banks to show the source of subsequent fraudulent activity, however.

More information may be found here.