New York Attorney General Eric Schneiderman and nine other state attorneys general announced on Wednesday a settlement with TD Bank, N.A. in regards to data breach from 2012.
A year and a half long investigation was launched into TD Bank following the alleged loss of unencrypted data in Massachusetts in 2012, which held bank customers' personal information. The lost data contained personal information for 260,000 TD Bank customers nationwide, with 31,407 customers affected in New York state alone.
"Consumers expect financial institutions to protect their personal information, and this settlement will help reform the policies and procedures that allowed this breach to happen,” Schneiderman said. “There has to be one set of rules for everyone, and that includes the big banks and financial institutions entrusted with protecting the sensitive personal information of customers.”
In the current settlement, TD bank is required to inform residents of any further security issues in a timely manner. TD Bank will also improve security policies in order to protect personal information. All back-up tapes will be encrypted prior to transport in compliance with state and federal regulations. The bank will complete a review of internal policies twice yearly to ensure compliance. The total settlement amount is $850,000 and New York state will receive $114,106.11.