Neiman Marcus to pay Kentucky for 2013 data breach

FRANKFORT, Ky. (WTVQ) – The Neiman Marcus Group will pay Kentucky’s General Fund more than $17,000 after a 2013 data breach, according to the Kentucky Office of the Attorney General.

Kentucky was one of 43 states and the District of Columbia included in a lawsuit involving 77 Neiman Marcus stores.

According to the lawsuit, 420 payment cards belonging to Kentuckians were compromised in the data breach.

According to the attorney general’s office, in January 2014, Neiman Marcus disclosed that payment card data collected at certain retail stores had been compromised by an unknown third party.

The states’ investigation determined that approximately 370,000 payment cards in total were compromised, which took place over the course of several months in 2013.

At least 9,200 of the payment cards compromised in the breach were used fraudulently.

Together the states will receive a collective $1.5 million from Neiman Marcus to settle the investigation.

The attorney general’s office says Kentucky’s General Fund portion will be available for lawmakers to appropriate during the 2020 legislative budget session.

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