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Madigan: Neiman Marcus To Pay $1.5M In Multi State Data Breach

CHICAGO (CBS) -- Illinois Attorney General Lisa Madigan announced the luxury retailer Neiman Marcus will pay a million and a half dollars to settle a credit card data breach affecting thousands of Illinois consumers.

Madigan launched the multi-state investigation with the Attorney General from Connecticut after the retailer admitted in 2014 that credit card data collected at the retail stores was compromised by an unknown third party.

Madigan, along with attorneys general from 42 other states, said the breach involved 77 Neiman Marcus stores.

"Neiman Marcus has a duty to protect sensitive customer data," Madigan said. "Under this settlement, Neiman Marcus must prioritize protecting consumer data and put in place protections to prevent future data breaches."

Illinois will receive more than $124,000 under the settlement. According the Illinois General's office, around 370,000 payment cards, including more than 19,000 from Illinois customers, were compromised.

Along with the financial settlement, Neiman Marcus will also implement a number of provisions to help prevent future breaches. Among them:

*Maintaining an appropriate system to collect and monitor its network activity.

*Maintain working agreements with two, separate and qualified Payment Card Industry forensic investigators.

*Require a third-party professional to put together an information security assessment and report corrective actions the company may have taken.

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