Massachusetts Restaurant Chain Fined $110,000 for Data Breach
If you're a business owner living in Massachusetts, failing to keep your customers' personal information safe from virtual prying eyes isn't just bad for business, it's also illegal. This was underscored by a MA restaurant chain agreeing to pay a $110,000 fine to settle a complaint alleging that hackers were able to access customers' credit and debit card information. That's a big no-no in Massachusetts.
According to ThreatPost.com, Massachusetts is home to the nation's toughest data breach law. In agreeing to pay $110,000 to settle charges, the Briar Group LLC becomes the first company to be fined under the law. The case actually dates back to an April 2009 incident when a malicious program was installed on Briar's network. The program wasn't detected and removed until eight months later.
In addition to the heavy fine, the Briar Group also agreed to prove compliance with the state's data security regulations and the Payment Card Industry Data Security Standards (PCI DSS). Despite all this, there aren't any hard feelings on the part of the Briar Group. In a statement, the Briar Group said the settlement "achieves our shared goal of ensuring that our customers can use their credit cards with confidence in the security of their data."
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rpeters1313
April 01, 2011 at 10:42am
This is not a good thing. What gives the state the right to this money? What about the people that got there information stolen what do they get.
If this was a settlement from a lawsuit I would have no problem with that. But with a law like this if someone was to install a card reader into an ATM and steal some numbers before it is found it is the Banks fault.
What happen to punishing the actual criminal not the people trying to make a living?
I can understand having to provide some security to your customers. But this story does not explain if they did provide some security or not. There is no such thing as a completely secure computer or network.
This story scares me. Why would anyone want to run a business in this state is beyond me?
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