Geico is fined $9.8 million by New York for the data breach.
Geico, a provider of auto insurance, was fined $9.75 million by the New York Attorney General's office on Monday for hacking into the personal data of 116,000 drivers in the state. Geico and Travelers Indemnity Company were accused by the state Department of Financial Services and the attorney general of breaking state data privacy laws by neglecting to put in place safeguards for consumer information.
Geico, a provider of auto insurance, was fined $9.75 million by the New York Attorney General's office on Monday for hacking into the personal data of 116,000 drivers in the state. Geico and Travelers Indemnity Company were accused by the state Department of Financial Services and the attorney general of breaking state data privacy laws by neglecting to put in place safeguards for consumer information.
According to the agencies, both businesses experienced hacking during the COVID-19 epidemic, as part of a wave of cyberattacks that sought data including driver's license numbers for use in fictitious unemployment claims. According to the agencies, travelers will pay $1.55 million for a hack that revealed data on almost 4,000 individuals. The two businesses decided to take action to strengthen their cybersecurity procedures.
According to a Geico representative, the firm informed the state about the incident and has since invested a substantial amount of money in enhancing its cybersecurity. A request for comment was not immediately answered by a Travelers representative.