TD Bank to pay $625,000 in data breach case
TD Bank will pay $325,000 in civil penalties and has agreed to give prompt notice of future data breaches and to comply with state data security rules as part of a settlement announced Monday in connection with an incident that occurred in 2012.
Attorney General Martha Coakley's office, in a Suffolk Superior Court filing, alleged that the bank, in March 2012, lost two unencrypted computer server backup tapes, which were supposed to have been transported by a third-party courier from an office in Haverhill to another in Springfield. An ensuing bank investigation determined the tapes may have included detailed personal information of Massachusetts residents, including bank account and Social Security numbers.
More than 90,000 Massachusetts residents were among more than 260,000 nationwide potentially affected, and TD Bank did not notify the Coakley's office and consumers about the breach until seven months later, the AG’s's office said.
While the Bank claimed there has been no evidence of fraud or unauthorized access to the use of personal information involved in the incident, TD has agreed to the civil penalties, $75,000 in attorney's fees and costs, and will pay $225,000 to a fund administered by the attorney general to promote education or local consumer aid programs, the attorney general’s office said.
TD Bank has also agreed to work on tightening security measures among third-party service providers, according to Coakley’s office.
WBJ Web Partners
Most Recent
Most Recent
0 Comments