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NY AG settles first data breach case
From: Chris Walsh <chris () cwalsh org>
Date: Fri, 27 Apr 2007 22:45:03 -0500
By Sharon Gaudin InformationWeek April 27, 2007 01:32 PM The New York Attorney General has obtained the first settlement under the state's new security breach notification law. Attorney General Andrew Cuomo announced Thursday that it has reached an agreement with CS Stars LLC, a Chicago-based claims management company, to implement precautionary procedures, comply with New York's notification law in the event of another security breach, and pay $60,000 to the AG's office for investigation costs. On May 9, 2006, an employee at CS Stars noticed that a computer was missing that held personal information, including the names, addresses, and Social Security numbers of recipients of workers' compensation benefits, according to the AG's office. The New York Special Funds Conservation Committee, a not-for-profit organization created to assist in providing benefits to workers under the New York Workers' Compensation Law, was the owner of the data contained in the missing computer. It was not until June 29, 2006 that CS Stars first notified Special Funds of the security breach, the AG's office reported. On the same date, the company notified the FBI, as well. The FBI instructed the company to not send out any notifications to people who might be affected by the data breach because it might impede their investigation. According to the AG's release, CS Stars notified the Attorney General's office, the Consumer Protection Board, and the state office of Cyber Security about the breach on June 30, 2006. Then on July 18, the company, with the permission of the FBI, the company began sending out notices to the approximately 540,000 potentially affected New York consumers notifying them of the security breach. [...] Via http://www.informationweek.com/news/showArticle.jhtml? articleID=199202218 _______________________________________________ Dataloss Mailing List (dataloss () attrition org) http://attrition.org/dataloss Tracking more than 207 million compromised records in 634 incidents over 7 years.
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