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TD Bank Settles Multi-state Inquiry into 2012 Data Breach
Practical Law Legal Update 7-584-8725 (Approx. 2 pages)
TD Bank Settles Multi-state Inquiry into 2012 Data Breach
by Practical Law Intellectual Property & Technology
| Published on 16 Oct 2014 • USA (National/Federal) |
The New York Attorney General announced a $850,000 multi-state settlement with TD Bank, N.A. relating to a 2012 data breach that compromised 1.4 million files.
On October 15, 2014, New York Attorney General Eric T. Schneiderman issued a press release announcing the settlement of a multi-state inquiry into a 2012 data breach affecting TD Bank, N.A. The settlement involved nine state attorneys general and arose out of TD Bank's reported loss of unencrypted backup tapes in Massachusetts, which contained 1.4 million files and included personal information for 260,000 TD Bank customers nationwide, including 31,407 New York customers.
Under the settlement agreement, TD Bank will pay $850,000 and must encrypt backup tapes and comply with all security protocols before transporting them. The settlement agreement also requires TD Bank to:
- Timely notify state residents of any future security breaches or other acquisitions of personal information.
- Maintain reasonable security policies to protect personal information.
- Bi-annually review existing internal policies regarding the collection, storage and transfer of consumers' personal information and make changes to better protect this information.
- Institute further training for its employees.