NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman and eight other state attorneys general on Wednesday announced a settlement with TD Bank N.A. over a data breach in 2012.
An 18-month-long investigation was launched into TD Bank following the alleged loss of unencrypted data in Massachusetts. Connecticut, Florida, Maine, Maryland, New Jersey, North Carolina, Pennsylvania and Vermont also were a part to the settlement.
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.”
Under the settlement, TD bank is required to inform residents of any further security issues in a timely manner. TD Bank also will improve security policies 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, Schneiderman said.
The total settlement amount is $850,000 and New York state will receive $114,106.11.