TD Bank will pay $625,000 and take steps to strengthen its security practices after losing unencrypted back-up tapes containing personal information for more than 90,000 Massachusetts customers, and delaying a notice of the incident to the Attorney General’s Office and impacted residents, Attorney General Martha Coakley announced in a press release.
TD Bank has branch in the Pinehills.
the AG’s Office alleges that in March 2012, the bank lost two unencrypted computer server backup tapes intended for delivery from its Haverhill office to its Springfield office.
Upon learning that the tapes had not arrived, TD Bank determined tat the tapes may have included the names, addresses, Social Security numbers, account numbers or other personal information of Massachusetts residents. However, the bank did not notify the AG’s Office and potentially affected consumers about the breach as required under state law until October 2012.
According to the settlement, the AG’s Office alleges that TD Bank violated state data security regulations. The AG’s Office also alleged TD Bank violated the state data breach notice law by delaying notice the incident. TD Bank claimed there was no evidence of fraud or unauthorized access or use of the personal information involved in the incident.
To resolve the allegations, TD Bank agreed to a settlement amount of $825,000. It will will pay $325,000 in civil penalties, $75,000 in attorney’s fees and costs, and $225,000 to a fund administered by the AG’s Office to promote education or to fund local consumer aid programs. In addition, TD Bank has been credited $200,000 to reflect security measures and upgrades it has already taken following the incident. TD Bank cooperated with the AG’s Office throughout the investigation.