In the wake of the Target credit card breach, consumer outrage has spurred three class-action lawsuits and multi-state investigations. While Target has offered incentives to customers, such as free credit report monitoring to at-risk customers, it remains to be seen if these measures will be enough to satisfy consumer anxiety.
"With these data security breaches, there's usually the question of consumer confidence and trust," said Daren Orzechowski, a technology and intellectual property attorney at White & Case LLP. "They have to balance if they feel they need to do more to try to preserve consumer confidence." Both the state and civilian queries will be interested in "when did Target know there was an issue and how long did they wait, in terms of responding, because there’s a lot of obligations on promptly notifying people and there is going to be a lot of focus on that in the days to come."