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Attorney General James and DFS Superintendent Harris Secure $11.3 Million from Auto Insurance Companies over Data Breaches

Government Employees Insurance Company (GEICO) and The Travelers Indemnity Company (Travelers)November 25, 2024New York Attorney General

Penalty Amount

$11,300,000

Consumers Affected

120,000

Summary

New York Attorney General Letitia James and New York State Department of Financial Services (DFS) Superintendent Adrienne Harris settled with auto insurers GEICO and Travelers for $11.3 million combined over data breaches that exposed over 120,000 New Yorkers’ personal information, including driver’s license numbers and dates of birth. The breaches stemmed from insufficient data security controls, allowing hackers to steal information and file fraudulent unemployment claims during the COVID-19 pandemic. The settlements require the companies to pay penalties and implement enhanced cybersecurity measures including comprehensive information security programs, data inventories, and improved access controls.

Remedy

GEICO will pay $9.75 million and Travelers will pay $1.55 million in total penalties of $11.3 million. Both companies must implement comprehensive information security programs, maintain data inventories of private information, adopt reasonable authentication procedures, implement logging and monitoring systems for suspicious activity, and enhance threat response procedures. GEICO must additionally conduct a comprehensive cybersecurity risk assessment and penetration testing with an action plan to address gaps, while Travelers must review systems, assess access controls, and improve protections for nonpublic personal information (NPI).

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review all vendor agreements with entities handling personal or nonpublic information to ensure robust cybersecurity requirements are included. Clauses should mandate multifactor authentication for access to sensitive systems, comprehensive information security programs, regular data inventories, and logging/monitoring systems for suspicious activity. Contracts should require vendors to comply with applicable cybersecurity regulations (e.g., DFS Cybersecurity Regulation for New York financial institutions) and conduct periodic risk assessments and penetration testing. Breach response clauses should require prompt detection and notification of breaches, and audit rights should be included to verify compliance with security requirements. For vendors handling nonpublic personal information (NPI), explicit access control and safeguard requirements must be added.

Contract Search Terms

multifactor authenticationdata security programcybersecurity risk assessmentpenetration testingdata inventoryaccess controlslogging and monitoringbreach response plan

Laws Cited

DFS’s cybersecurity regulation

Violation Types

Entity Details

Entity

Government Employees Insurance Company (GEICO) and The Travelers Indemnity Company (Travelers)

Industry

Insurance

Official Sources

Source Evidence

Entity Name
"the Government Employees Insurance Company (GEICO) and The Travelers Indemnity Company (Travelers)"
Fine Amount
"secured $11.3 million in penalties from two auto insurance companies, the Government Employees Insurance Company (GEICO) and The Travelers Indemnity Company (Travelers)"
Fine Amount
"GEICO will pay $9,750,000 in penalties, of which OAG secured $4,750,000 and DFS secured $5 million. Travelers will pay $1,550,000 in penalties, of which OAG secured $350,000 and DFS secured $1,200,000."
Event Date
"November 25, 2024"
Jurisdiction
"New York Attorney General Letitia James and New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris"
Event Type
"today’s settlements"

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