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Fintech giant Fiserv sued by Pa. credit union for 'baffling security lapses'

Fintech giant Fiserv sued by Pa. credit union for 'baffling security lapses' (Incident Response, Learnings)

Written by Sean Lyngaas Apr 26, 2019 | CYBERSCOOP A Pennsylvania credit union has sued fintech giant Fiserv for allegedly failing to address persistent vulnerabilities in the platform that powers its banking websites and online applications. In a lawsuit filed Friday, Bessemer System Federal Credit Union said that the web platform maintained by Fiserv, is “plagued with security vulnerabilities that affect the privacy of thousands of Bessemer’s members.” Those vulnerabilities were “based on baffling and amateurish security lapses,” the document alleges. But now, the credit union says it’s ditching Fiserv, a Fortune 500 company that says it has some 12,000 clients in over 80 countries. “To protect the credit union’s members, the credit union is replacing its core processing vendor and will be taking appropriate legal action against the vendor,” said Charles Nerko, a lawyer representing Bessemer System FCU. The credit union is claiming it is owed relief from alleged damages caused by Fiserv on a number of grounds – including alleged negligence, unfair trade practices, and breach of contract.

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