TD Bank, N.A. has agreed to a settlement that resolves a nine-state investigation into a 2012 data breach that compromised 1.4 million files. The $850,000 settlement requires the bank to reform its practices to help ensure that future loss of personal information doesn’t occur.
"Consumers expect financial institutions to protect their personal information, and this settlement will help reform the policies and procedures that allowed this breach to happen,” said New York Attorney General Eric T. Schneiderman. “There has to be one set of rules for everyone, and that includes the big banks and financial institutions entrusted with protecting the sensitive personal information of customers.”
In 2012, TD Bank reported the loss of unencrypted backup tapes in Massachusetts. The tapes contained 1.4 million files and 1,800 different file types that had been accumulated over a period of eight to 10 years. In total, the files contained personal information for 260,000 TD Bank customers nationwide.