Conn. Leads $5.5M Multistate Settlement With Nationwide Insurance Company Over 2012 Data Breach
On
The vulnerability allowed hackers to access consumer information that Nationwide collected when providing consumers with quotes for its insurance products. Personal information - including full names, sex, occupations, employer names and addresses, driver's license numbers and states of issuance,
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 be able to provide the consumers additional quotes at a later date. Approximately 774
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"Our economy works best when businesses can be trusted to protect consumer information appropriately," said Consumer Protection Commissioner Michelle H. Seagull, "We encourage all businesses to make computer safety, and data security part of everyday workplace culture in order to protect information, and ensure consumer's trust."
In addition to the settlement payment, Nationwide has agreed to be more transparent about its data collection practices by disclosing that they retain information collected from consumers even if the consumers do not become insureds. The companies are required to appoint a qualified individual who is responsible for monitoring and managing software and application security updates and security patch management.
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 of 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; and
* 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.
The
Assistant Attorneys General
Please click here to view the settlement document (http://www.ct.gov/ag/lib/ag/press_releases/2017/20170809_nationwideavc.pdf).


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