News

Sony insurer sues to deny data breach coverage
Posted: 22.07.2011 12:41 by Nick Akerman Comments: 2
Sony faces 55 class-action lawsuits in the US as a result of April's PlayStation Network breach.

Class-action suits require a volume of people to bring a case to court. The 55 number was alleged by insurance company Zurich American, a branch of Zurich Financial Services, during a separate court case against Sony, Reuters reports.

Zurich American, one of Sony's insurers, argued that its policy didn't cover damage from cyber attacks. Zurich declared its insurance was for "bodily injury, property damage or personal and advertising injury" only.

Sony bears responsibility for the fraudulent misuse of credit card details stolen from PlayStation Network account holders in the US. Things are different in the UK, where that responsibility lies with credit card companies or vendors.

This year's PSN breach saw the data of 77 million PlayStation Network accounts compromised, with the details of around 12.3 million credit cards said to be within this.

Sony expects the PSN breach to cost it 105 million by the time its fiscal year ends in March 2012.
Source: Eurogamer

Comments

By Jasca_Ducato (SI Core) on Jul 22, 2011
Jasca_Ducato
Sony MUST have some credence, otherwise why would they have the insurance. Also, although the responsibility for credit card misuse falls to the companies and vendors, I'm sure Sony's definately gonna have some backlash...
By PowerJack (SI Elite) on Jul 22, 2011
PowerJack
"Zurich American, one of Sony's insurers, argued that its policy didn't cover damage from cyber attacks."

They're right its the consumers fault.

^.^