Two major auto insurance companies, GEICO and Travelers, will pay over $11 million in penalties to New York after a 2020 cyberattack exposed sensitive data from more than 120,000 customers.
The breach allowed hackers to exploit state unemployment systems using stolen personal information, including driver’s licenses and birth dates.
The New York Attorney General’s Office and the Department of Financial Services found that both companies had inadequate data security measures, violating state regulations. GEICO will pay nearly $10 million, while Travelers will pay $1.6 million as part of the settlement. Both companies have committed to strengthening cybersecurity, conducting risk assessments, and addressing vulnerabilities.
The attack on GEICO targeted its auto insurance quoting tools in 2020, and the company reportedly failed to bolster its systems despite warnings from regulators. Travelers suffered a breach in 2021 via its agent portal, which went undetected for over seven months. Hackers used the stolen data to file fraudulent unemployment claims during the pandemic.
New York has seen a rise in cyberattacks, with over 25,000 reported in 2022 compared to 16,400 in 2016.
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