New York fines Geico $9.8 million over data breach
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FILE PHOTO: People pose with 'gecko' from GEICO in Omaha, Nebraska, U.S. May 5, 2023. REUTERS/Rachel Mummey/File Photo
(Reuters) -The New York Attorney General's office fined car insurance company Geico $9.75 million on Monday for hacks that obtained personal information on 116,000 drivers in the state.
The attorney general and state Department of Financial Services said Geico and Travelers Indemnity Company violated state data protection rules by failing to implement policies that would protect customers' information.
Both companies were hacked during the COVID-19 pandemic, amid a wave of cyberattacks seeking information such as drivers license numbers for use in fraudulent unemployment claims, the agencies said.
Travelers will pay $1.55 million for a breach that exposed information on around 4,000 people, the agencies said.
The two companies agreed to take measures to improve their cybersecurity practices.
A Geico spokesperson said the company reported the breach to the state and that it has since put significant resources towards further strengthening its cybersecurity.
A spokesperson for Travelers did not immediately reply to a request for comment.
(Reporting by Jody Godoy in New York; Editing by Chizu Nomiyama and Jonathan Oatis)
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