Breach, Data Security

TD Bank reaches $850K breach settlement with states

TD Bank has reached a settlement with several states, in order to resolve an investigation of a 2012 data breach in which it lost unencrypted backup tapes containing data of 260,000 customers.

New York Attorney General Eric Schneiderman announced the $850,000 settlement on Wednesday, adding that New York State, where more than 31,000 customers were impacted, will receive around $114,000 of the settlement funds.

Schneiderman, along with eight other state attorneys general, helped negotiate the agreement, the release said, which includes assurance from TD Bank that it will not transport backup tapes unless they are encrypted “and all security protocols are complied with.”  

Back in 2012, TD Bank reportedly began notifying customers of the breach more than six months after the incident took place. The backup tapes contained 1.4 million files which were accumulated over an eight-to-10-year period, Schneiderman said.

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