Title Firm Sues Capital One Over Data Breach

  • Security

A title insurance firm in Virginia is suing Capital One over an eight-day data breach resulting in over $200,000 in losses due to lack of dynamic knowledge-based authentication.

In June 2010, cybercriminals infected computers of Global Title Services with the Zeus Trojan, which in turn gave them direct access to the companys network and online banking passwords. According to the suit, Global Title is holding Capital One responding for allegedly failing to provide commercially reasonable security procedures.

By operating a single factor identification online banking system, Capital One lefts its customers open to identity theft and failed to take sufficient safeguards to prevent unauthorized access to its clients online banking accounts, including the ability to send wire transfers, the company charged in its complaint.

If dynamic knowledge-based authentication had been part of the login process, it would have been much more difficult for this cybercrime to be accomplished.