Attorney General Porrino Announces Multi-State Settlement With Nationwide Insurance Over Consumer Data Breach
Attorney General
The multi-state settlement, which also includes Nationwide subsidiary
The states alleged that the
"This is an important settlement for consumers in
The settlement announced today requires Nationwide to take a variety 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 also must 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.
In addition, Nationwide has 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 of consumers' personal data.
* Conducting regular inventories of the patches and updates applied to its systems used to maintain consumers' personal identifying information.
* Maintaining and utilizing system tools to monitor the health and security of their systems used to maintain personal identifying information.
* 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 personal identifying information.
Although many consumers whose data was lost as a result of the 2012 breach never became Nationwide customers, the company retained their data in order to more easily provide them re-quotes at a later date.
The multi-state settlement requires Nationwide to be more transparent about its data collection practices by disclosing to consumers that it retains their personal identifying information even if they do not become Nationwide customers. In addition to its injunctive terms, the settlement calls on Nationwide to make a total payment of
In addition to
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