August 10, 2017

CT shares in $5.5M data breach settlement with Nationwide

PHOTO | Contributed
PHOTO | Contributed
State Attorney General George Jepsen.

Connecticut is sharing with other states a $5.5 million settlement with Nationwide Mutual Insurance Company to resolve claims related to a 2012 data breach, state Attorney General George Jepsen said.

The state is joining 31 other states and the District of Columbia in the settlement, which affects about 1.2 million consumers nationally, and 774 residents in Connecticut. Connecticut's share of the settlement is $256,559.28, which will be put in the state's General Fund, Jepsen said.

On Oct. 3, Nationwide and its subsidiary, Allied Property & Casualty Insurance Co., also a party in the case, suffered a data breach when hackers exploited a vulnerability in the companies' third-party Web application hosting software, the states' probe found. The companies had failed to apply a critical software patch needed to address the issue, Jepsen said.

Hackers accessed the sensitive personal information of consumers, many who were not Nationwide customers, but prospective ones, according to Jepsen and Connecticut Department of Consumer Protection Commissioner Michelle H. Seagull.

As part of the settlement, Nationwide has agreed to take several steps to strengthen its security practices over the next three years. These include updating its procedures and policies regarding storage of consumers' personal data and conducting regular inventories of the patches and updates applied to its consumer information systems.

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