Attorney General Jackley Joins Settlement With Nationwide Insurance Over Data Breach
Attorney General
"Nationwide had the ability to protect consumers from this breach, but failed to do so," said Jackley. "This lack of protection exposed consumers to identity theft and a direct target on their credit."
The settlement requires Nationwide to take a number of steps to both generally update its security practices and to ensure the timely application of patches and other updates to its security software. Nationwide must also hire a technology officer responsible for monitoring and managing software and application security updates, including supervising employees responsible for evaluating and coordinating the maintenance, management, and application of all security patches and software and application security updates. Additionally, Nationwide agreed to take steps during the next three years to strengthen its security practices, including:
* Updating its procedures and policies relating to the maintenance and storage consumers' personal data.
* Conducting regular inventories of the patches and updates applied to its systems used to maintain consumers' personal information ("PII").
* Maintaining and utilizing system tools to monitor the health and security of their systems used to maintain PII.
* Performing internal assessments of its patch management practices and hiring an outside, independent provider to perform an annual audit of its practices regarding the collection and maintenance of PII.
Many of the consumers whose data was lost as a result of the data breach were consumers who never became Nationwide's insureds, but the company retained their data in order to more easily provide the consumers re-quotes at a later date. The settlement requires Nationwide to be more transparent about its data collection practices by requiring it to disclose to consumers that it retains their PII even if they do not become its customers.
In addition to the injunctive terms, Nationwide agreed to make a payment of


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