New York fines Geico $9.8 million over data breach
The New York Attorney General's office has fined Geico $2.75 million for a data breach that compromised the personal information of 116,000 drivers. The fine was imposed due to violations of state data protection rules, as Geico and Travelers Indemnity Company failed to implement adequate cybersecurity measures. Travelers will pay $0.55 million for a breach affecting around 4,000 individuals. Both companies have agreed to enhance their cybersecurity practices following the incidents, which occurred during a surge of cyberattacks amid the COVID-19 pandemic.
Nov 25 (Reuters) - The New York Attorney General’s office fined car insurance company Geico $9.75 million on Monday for hacks that obtained personal information on 116,000 drivers in the state.
The attorney general and state Department of Financial Services said Geico and Travelers Indemnity Company violated state data protection rules by failing to implement policies that would protect customers’ information.
Both companies were hacked during the COVID-19 pandemic, amid a wave of cyberattacks seeking information such as drivers license numbers for use in fraudulent unemployment claims, the agencies said.
Travelers will pay $1.55 million for a breach that exposed information on around 4,000 people, the agencies said.
The two companies agreed to take measures to improve their cybersecurity practices.
