This article discusses serious allegations made by a former employee of Sam’s Club regarding the handling of sensitive employee and customer data. A class-action lawsuit claims that both Sam’s Club and their vendor failed to implement necessary security measures, leading to a significant data breach.
Key Points
- The lawsuit alleges that Sam’s Club and Cleo Communications neglected to take reasonable security precautions to protect personal data.
- The companies reportedly did not encrypt or remove sensitive information when it was no longer needed.
- The plaintiff claims a data breach has caused actual harm, leading to accusations of negligence and breach of contract.
- Sam’s Club has stated they will robustly defend against the allegations, asserting the claims lack merit.
- This situation follows a cyberattack investigation involving vulnerabilities in Cleo’s file transfer software.
Why should I read this?
If you’re in HR or just generally interested in data privacy, this article is a must-read. Data breaches are a big deal, and understanding the implications for businesses and consumers can save you a lot of hassle down the road. Plus, it’s always good to keep up with how major companies handle sensitive information—and fail to do so!
