Following a data breach that compromised 25,000 credit card numbers, the attorney general of New York reached a settlement with Provision Supply, d/b/a EZcontactsUSA.com.
The online retailer has agreed to pay $100,000 and to upgrade its data security practices, according to a release from Attorney General Eric T. Schneiderman.
The website of the Brooklyn, N.Y.-based e-retailer was attacked in August 2014 and its merchant bank alerted it in June 2015 that fraudulent charges were showing up on card accounts. EZcontactsUSA.com quickly hired a forensic investigation firm, which succeeded in removing malware on its site.
However, the company failed to notify customers or law enforcement and was found to misrepresent the safety of its website, which it claimed was secure.
In addition to the fine, the company has agreed to investigate any future breaches, provide prompt notice to authorities and affected customers in New York, maintain reasonable security policies and train employees.