The Irish loyalty programme firm, Loyaltybuild have been hit by a hack attack which saw the loss of 376,000 customer full credit card details.

According to investigatory results by the Office of the Data Protection Commissioner (ODPC), credit card and contrary to all payment storage rules CVV details were held unencrypted on Loyaltybuild's systems in the run-up to attacks in the middle of October.

The ODPC found that a further 1 million people had their personal details stolen. Loyaltybuild have acknowledged the security breach to be at the hands of criminal cyber gangs. Irish banks AIB and TSB have already confirmed that they have uncovered potential evidence of card fraud which is directly linked to the Loyaltybuild breach.

Under the Privacy Liability Section of a Cyber Liability Insurance, insurers would pay on behalf of their policyholders all sums for which they become legally obliged to pay (including liability for claimants costs & expenses) for failure to maintain the security of personally identifiable data including Credit Card information for which they are responsible.

For further details on Cyber Liability Insurance, please contact Geoff Stanbridge on 01903-608106

Article adapted from The Register 14th November 2013