Capital One Settles with Bank Regulator for $80M for Data Breach

Robinson+Cole Data Privacy + Security Insider

The U.S. Office of the Comptroller of the Currency (OCC) announced this week that it has entered into a Consent Order and fined Capital One $80 million for the data breach the company experienced last year. The OCC announced the fine and stated that it was the result of an investigation that found that Capital One failed to adequately identify and manage risk as it moved significant portions of its technological operations to the cloud.

In its Consent Order, the OCC stated that the company lacked sufficient network security and data loss prevention controls and that when the internal audit department did identify issues, the bank’s board of directors failed to hold management accountable to address them.

The data breach affected the information of 100 million individuals from the U.S. and 6 million Canadians. Of the data that were compromised, approximately 140,000 Social Security numbers and 80,000 linked bank account numbers were affected.

The OCC also is requiring Capital One to enhance security measures to adequately guard against general cybersecurity risks as well as risks specific to cloud operations, which are required to be submitted and reviewed by the regulator.

[View source.]

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