New York Fines Geico and Travelers Over Data Breach

New York fines Geico and Travelers over $11 million for data leak. New York state regulators have imposed fines exceeding $11 million on Geico and Travelers due to a 2020 data breach that compromised the driver’s license numbers of approximately 120,000 residents. The breach facilitated fraudulent unemployment claims during the COVID-19 pandemic, with hackers exploiting poor data security practices. Geico will pay $4.75 million to the Attorney General and $5 million to the Department of Financial Services, while Travelers faces fines of $350,000 and $1.2 million, respectively. Both companies are required to enhance their data security measures, including regular system reviews and penetration tests, following warnings about vulnerabilities in their systems. This action is part of a broader effort by New York officials to hold companies accountable for inadequate consumer data protection.