New York Attorney General Letitia James has imposed a $975,000 penalty on Root for failing to secure the personal data of about 45,000 residents. This breach emerged during a wider effort to steal personal data from auto insurance quoting applications, contributing to a surge in fraudulent unemployment claims amid the COVID-19 pandemic. Previously, penalties totaling $5.1 million were secured against GEICO and Travelers for similar failures. Attorney General James emphasized the importance of robust data security practices, stressing that the settlement serves as a warning to the auto insurance sector.
When companies have poor data security practices, they put individuals at risk of identity theft and other fraud.
Today's settlement brings the total amount secured from auto insurance companies for their failure to protect New Yorkers' data to $6.57 million.
#data-breach #auto-insurance #new-york-attorney-general #personal-information-security #fraud-prevention
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