US Bank Accused of Data Breach Cover-Up

Two small business owners find themselves at the center of a class action lawsuit against banking giant US Bank over the accusation of a large scale data breach cover-up. The family-owned online Paintball retailer, Paintball Punks, received 9 orders that were placed using US Bank credit cards. As was standard protocol, the credit card security numbers and billing addresses were verified. Weeks later, US Bank customers began disputing the charges and US Bank recouped their losses by doing "charge backs" where they essentially take back the money that was given to the retailer.


These charge backs cost Paintball Punks over  $11,000, while this amount seems small, the class action law suit was filed due to the unknown scope of the alleged breach. After investigating the claims by US Bank, one owner claims that a US Bank employee divulged that there had been a breach, but it did not go public. The alleged cover-up is in violation of state and federal data breach laws. U.S. Bank maintains that there was no breach and that the claims made in this lawsuit are wholly without merit.