Genesco Probes Visa in $13M Data Theft Case

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The fallout from the 2010 Genesco Inc. data breach continues.

The Nashville, Tenn.-based retailer filed documents with the U.S. District Court on Monday asking a federal judge to compel Visa to hand over documents it has allegedly been withholding.

Genesco claims the documents under seal reveal the extent of the fraud reported on Visa payment accounts involved in Genesco transactions before and after the data breach in 2010.

The company sued Visa U.S.A. and Visa International Service Association in March last year to recover $13.3 million in damages after it was fined by Visa for fraudulent purchases following the theft of customer account information.

Visa said the illegal transactions totaled more than the nearly $13.3 million that it fined Fifth Third Bank and Wells Fargo Bank, which issued the cards involved. The banks, in turn, took the money from Genesco.
   
This first-of-its-kind case has the potential to set a powerful precedent for the practice of payment cards punishing merchants and their banks for cyber attacks.

The attempt to uncover the scope of Genesco’s security intrusion comes as Target Corp. struggles to recover from its data breach scandal and a number of other companies, such as eBay, handle cybercrime attacks of their own.

Earlier this year, Chris Gray, director of Denver-based Accuvant information security firm’s risk and compliance practice, told Footwear News that more than 12 retailers have yet to disclose breaches of their payment systems.