Large Insurance Company Settles for $5.5 Million over "Failed To Patch" Data Breach



nationwide_logo.pngA large insurance company (Nationwide) agreed to pay a total of $5.5 Million to settle charges brought by 32 states resulting from the loss of critical consumer information attributable to a criminal data breach.

According to the Settlement Agreement, the respondent lost the data for 1.27 million customer across the country when hackers exploited a security breach created when the respondent failed to implement a security patch.

As part of the settlement, the insurance company agreed to appoint a security patch supervisor, implement security patch policies and procedures, and perform internal assessments.

The New York State Attorney General criticized the respondent for its “true carelessness while collecting and retaining information from prospective customers, needlessly exposing their personal data in the process.”

He warned, “This settlement should serve as a reminder that companies have a responsibility to protect consumers’ personal information regardless of whether or not those consumers become customers. We will hold companies to account if they don’t.”

THE UPSHOT: The NYS Attorney General implies that companies can be held liable for data breaches that result from simple negligence rather than recklessness or intent. A solid compliance program that includes a robust cybersecurity assessment can help defend charges that a firm acted negligently. Here is the PDF from the NY Attorney General site: https://ag.ny.gov/sites/default/files/nationwide-aod.pdf 

Here Are 8 Things To Do About It (apart from having weapons-grade backup)

  1. From here on out with any ransomware infection, wipe the machine and re-image from bare metal
  2. If you have no Secure Email Gateway (SEG), get one that does URL filtering and make sure it's tuned correctly
  3. Make sure your endpoints are patched religiously, OS and 3rd Party Apps
  4. Make sure your endpoints and web-gateway have next-gen, frequently updated  (a few hours or shorter) security layers
  5. Identify users that handle sensitive information and enforce some form of higher-trust authentication (like 2FA)
  6. Review your internal security Policies and Procedures, specifically related to financial transactions to prevent CEO Fraud
  7. Check your firewall configuration and make sure no criminal network traffic is allowed out
  8. Deploy new-school security awareness training, which includes social engineering tests via multiple channels, not just email

Since phishing has risen to the #1 malware infection vector, and attacks are getting through your filters too often, getting your users effective security awareness training which includes frequent simulated phishing attacks is a must

KnowBe4's integrated training and phishing platform allows you to send attachments with Word Docs with macros in them, so you can see which users open the attachments and then enable macros!

See it for yourself and get a live, one-on-one demo.

 Request A Demo

PS: Don't like to click on redirected buttons? Cut & Paste this link in your browser:

https://info.knowbe4.com/kmsat-request-a-demo


Topics: Data Breach

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