Penalty Amount
$11,300,000
GEICO and Travelers were fined $11.3 million for data breaches that exposed personal information of over 120,000 New Yorkers due to inadequate cybersecurity. The breaches involved driver's license numbers being stolen and used in fraudulent unemployment claims. The settlements mandate enhanced security measures and penalties.
GEICO must pay $9.75 million and Travelers $1.55 million in penalties. Both companies must implement comprehensive information security programs, maintain data inventories, improve authentication, enhance logging and monitoring, and conduct cybersecurity risk assessments and penetration testing.
In-house legal teams should review all agreements related to online insurance quoting applications, including vendor contracts with software providers, customer privacy policies, and data processing agreements. Focus on clauses governing data security standards (e.g., encryption, access controls), incident response and breach notification timelines, audit rights, and third-party vendor oversight. Given the failure to protect driver's license numbers, contracts must be updated to mandate specific technical safeguards like multi-factor authentication, regular penetration testing, and strict data minimization/retention limits. Vendor agreements should include enforceable security requirements, right-to-audit provisions, and liability for breaches caused by vendor negligence.
Entity
Government Employees Insurance Company (GEICO) and The Travelers Indemnity Company
Also known as: GEICO, Travelers
Industry
Financial ServicesOfficial Press Release
https://ag.ny.gov/press-release/2024/attorney-general-james-and-dfs-superintendent-harris-secure-113-million-auto
geico travelers aod combined
https://ag.ny.gov/sites/default/files/settlements-agreements/geico-travelers-aod-combined.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
$240K
The New York Attorney General investigated a group of debt buyers for filing foreclosure actions seeking payment of long-expired mortgage debts. The companies agreed to pay $240,000 in penalties and more than $242,000 in consumer restitution, stop seeking payment of time-barred debts, and amend claims in pending foreclosure cases.
$240K
New York Attorney General Letitia James reached an agreement with debt buyers that allegedly filed foreclosure lawsuits seeking payment on expired mortgage debt. The companies must pay $240,000 in penalties and more than $242,000 in restitution, and stop seeking expired payments in ongoing and future cases.
$6.0M
The New York Attorney General secured disgorgement settlements totaling $5,975,861 from four promoters of NovaTech and AWS Mining over fraudulent investment claims and an illegal pyramid scheme. The promoters were permanently banned from the securities, commodities, and cryptocurrency industries; the Attorney General separately asked the court to order NovaTech’s founders to pay $1.3 billion, which was not yet an order.
$98K
New York Attorney General Letitia James secured a settlement after T-Mobile raised prices on plans it had advertised with a promise that prices would never change. T-Mobile must offer affected customers refunds and other benefits, honor price guarantees through at least 2029 for customers who remain, clearly disclose limitations on future guarantees, and pay New York $98,000.
$2.6M
New York and Connecticut reached a settlement with Boston Children’s Health Physicians and its IT security provider, XTIUM, after a 2024 breach exposed private information of approximately 825,000 New York residents and 62,871 Connecticut residents. The companies will pay $2.64 million and implement enhanced cybersecurity measures; additional penalties are conditional on violating the settlement.
New York Attorney General Letitia James joined 16 other attorneys general in urging Congress to pass proposed legislation addressing the federal government’s release of Jeffrey Epstein-related records. The press release says DOJ has not fully disclosed the records required by the original law and that personal information of at least 43 victims was exposed in released files; this is a legislative advocacy announcement, not an enforcement action imposing a penalty or remedy.