Two auto insurance companies will pay over $11 million to New York after data from over 120,000 New York customers was leaked in a November 2020 cyber attack that allowed hackers to exploit the state’s unemployment system. Government Technology reports:
Both GEICO and Travelers, major national insurance companies, will pay penalties for their poor data security after an investigation headed by the state attorney general and the state Department of Financial Services.
The 2020 cyber attack was launched by hackers who managed to steal personal information, including driver’s licenses and birth dates, from online tools that provide customers with estimates for automobile insurance. Hackers then used that information to file fraudulent unemployment claims during the pandemic caused by the coronavirus.
GEICO and Travelers had weak data security measures in place to safeguard that information, a violation of regulations enforced by the Department of Financial Services, according to state Attorney General Letitia James’ office.
Read more at Government Technology.
The press release from NYS Attorney General Letitia James can be found here.
