Ally Bank hit with 2 lawsuits following alleged cyber attack

CITY NEWS. SAVANNAH, THANK YOU VERY MUCH. >> 9.34 NOW A MAJOR BANK WITH TIES TO THE QUEEN CITY HIT WITH NOT ONE BUT 2 CLASS ACTION LAWSUITS FOLLOWING AN ALLEGED CYBER ATTACK. FIRST FILE, A NORTH CAROLINA FEDERAL COURT THIS PAST SATURDAY. THE OTHER ON MONDAY, BOTH LAWSUITS CLAIMING ALLY BANK WAS NEGLIGENT IN PROTECTING HUNDREDS OF CUSTOMERS. PRIVATE INFORMATION APPOINTED. A NEW CHIEF BUSINESS CORRESPONDENT ALI YOUNG HAS BEEN COMBING THROUGH THE COURT FILINGS IN TAYLOR. THE LAWSUITS. >> COULD SET A MAJOR PRECEDENT FOR HOW COMPANIES HANDLE THESE TYPES OF DATA BREACHES. YOU KNOW, EVERY WEEK IT SEEMS THAT WE ARE REPORTING ON ANOTHER COMPANY THAT WAS IMPACTED BY A CYBERATTACK IN MANY OF THESE CASES. IT'S THE PRIVATE INFORMATION OF THE COMPANY'S CUSTOMERS. OUR USERS THAT END UP ON THE DARK WEB. NOW, WHAT WE'RE SEEING RIGHT NOW IS A GROUP OF PRIVATE CITIZENS FILING A LAWSUIT SAYING THAT THIS COULD HAVE AND SHOULD HAVE BEEN PREVENTED. AN ALLY BANK SHOULD BE HELD RESPONSIBLE FOR THE ALLEGED BREACH. NOW, THESE 2 LAWSUITS FILED WITHIN DAYS OF EACH OTHER ARE VERY SIMILAR. THEY RECOUNTED REPORTED CYBER ATTACK AGAINST ALLY BANK. ONE LAWSUIT CLAIMS THE BANK FOUND OUT ABOUT THE BREACH IN MID-JULY THE OTHER ON AUGUST. FIRST NOW IN BOTH LAWSUITS, THE PLAINTIFFS SAY THEIR PRIVATE INFORMATION LIKE NAMES, ADDRESSES, PHONE NUMBERS AND SOCIAL SECURITY NUMBERS WERE ACCESSED BY AN UNAUTHORIZED ACTOR, A K A CYBER CRIMINALS. THE CLASS MEMBERS IN BOTH CASES ALLEGE THE ALLY SHOULD HAVE KNOWN THE RISK THAT FINANCIAL INSTITUTIONS FACE WITH THE RISE IN CYBER CRIME AND AT THE BANK FAILED TO PROPERLY PROTECT THEM. I SPOKE WITH THE CYBER CYBERSECURITY EXPERT IN CHARLOTTE WHO SAYS, WELL, COMPANIES ARE ALSO A VICTIM WHEN WHICH IS LIKE THIS HAPPEN, THEY HAVE THE RESPONSIBILITY BOTH ETHICALLY AND LEGALLY TO PROTECT CONSUMERS. PERSONAL INFORMATION. >> YOU SHOULD BE EXPECTING THAT SOMEONE IS GOING TO TRY TO STEAL THAT DATA BECAUSE PEOPLE'S PERSONAL INFORMATION IS VALUABLE. WHEN YOU'RE EXPECTING THAT TO HAPPEN, IF YOU ARE NOT CONSISTENTLY TAKING A LOOK AT YOUR PLAN THAT YOU HAVE IN PLACE AND REORGANIZING AND REBUILDING AND TESTING IN ASSESSING AND PUTTING BETTER MEASURES IN PLACE. YOU ARE MORE VULNERABLE. NOW. THE LAWSUIT ALSO ACCUSES ALLY BANK OF FAILING TO COMPLY WITH THE FTC GUIDELINES. >> BOTH COURT FILINGS ARE REQUESTING THAT THE BANK PAY IMPACTED CONSUMERS AND WE DID REACH OUT TO ALLY BANK REGARDING THE LAWSUIT. I HAVE NOT HEARD BACK. NOW. WE KNOW TAYLOR, THERE ARE THOSE WHO GOT 2 LAWSUITS ON THE TABLE. COULD ALA ALSO FACE POTENTIAL FINES FROM REGULATORS? TIMING ABSOLUTELY COULD. TO THE FTC MANDATES THAT THESE COMPANIES PROTECT THEIR CONSUMER DATA THAT UNDER THE SAFEGUARDS ROLE IN WHAT THESE REQUIREMENTS ARE IS THEY INCLUDE EMAIL SECURITY, WHICH IS A BIG WAY THAT THESE COMPANIES DO GET HIT WITH. WE DON'T KNOW. THAT'S THE CASE HERE. THAT IS A RISK THAT COMPANIES HAVE IS WHAT THE E-MAILS THAT COME IN AND OUT. WE GET THEM HERE IN THE NEWSROOM. WE KNOW TO AVOID THEM. ALSO DATA ENCRYPTION AND THEN LASTLY LETTING IMPACT ERS IMPACTED. CUSTOMERS KNOW IN A TIMELY MANNER. AND OF COURSE, FAILING TO COMPLY WITH THESE REQUIREMENTS CAN LEAD TO HEFTY FINES AND LAWSUITS LIKE THE ONES THAT WE'RE COVERING RIGHT NOW. I MEAN, THESE MEASURES ARE THERE TO PROTECT DATA, MINIMIZE RISK IN LAST TIME AND GET BUSINESSES BACK UP AND RUNNING AS QUICKLY AS POSSIBLE. BUT, YOU KNOW, AT THE END OF THE DAY AND I DID SPEAK WITH A CYBER EXPERT ABOUT THIS. YOU CANNOT 100 PERCENT PREVENT A DATA BREACH FROM HAPPENING. WE KNOW THESE CRIMINALS ARE ONLY GETTING SMARTER. WE'VE SEEN MORE AND MORE COMPANIES BEING IMPACTED BY THIS. THE GOAL, HOWEVER, IS TO MAINTAIN TO MINIMIZE OR OTHER DAMAGE TO YOUR COMPANY AND THE CUSTOMERS IF THEY ARE IMPACTED IN. UNFORTUNATELY, CYBERSECURITY EXPERTS SAY OF COMPANIES ARE HIT ONCE THE CHANCES OF IT HAPPENING AGAIN. RAPIDLY INCREASE. >> AND TAYLOR, WE'VE SEEN THIS TIME AND TIME AGAIN. MAJOR CORPORATIONS TARGETED BY CYBER CRIMINALS. HOW IS THIS IMPACTING SOME SMALLER BUSINESSES? ARE THEY TARGETS AS WELL? WE KNOW THAT LAST YEAR AN ESTIMATED CYBER ATTACKS HAPPENED AS AN 80% INCREASE FROM JUST THE YEAR BEFORE. AND I THINK WHAT IS THE MOST SHOCKING DATA FROM ALL OF THIS IS THAT 50% >> OF THOSE CYBERATTACKS ACTUALLY HAPPENED TO SMALL BUSINESSES IN THE CYBER EXPERT THAT I SPOKE WITH. SHE SAYS WITH THE SMALL BUSINESSES THAT THEY WORK WITH, MANY OF THEM ARE ACTUALLY UNAWARE THAT THEY HAVE TO FOLLOW THE SAME EXACT FTC GUIDELINES AT THESE BIG CORPORATIONS ARE DEALING WITH. SO NOT ONLY ARE THEY ON A HIGH RISK OF A CYBER ATTACK, BUT THEY COULD ALSO BE FACING FINES THAT COULD ALSO BE FACING LAWSUITS IF A BREACH DOES HAPPEN. SO, YEAH, I MEAN, AGAIN, BOTH MAJOR CORPORATIONS, BILL, SMALL BUSINESSES, THEY ALL ARE VULNERABLE TO THESE BREACHES. AND UNFORTUNATELY IT CAN LEAD TO PAYING A LOT