NEW YORKâTD Bank has reached an agreement with New York Attorney General Eric T. Schneiderman requiring it to pay an $850,000 fine and reform its practices to help prevent breaches following a 2012 breach in which it lost two backup tapes that may have exposed personally identifiable information on about 260,000 of its customers.
The settlement was part of a multi-state agreement. According to a statement, the fine was also related to what was deemed to be slow notification of the breach. As part of the agreement the bank has agreed to ensure that no backup tapes will be transported unless they are encrypted and strong security protocols are adhered to. TD Bank must also review on a bi-annual basis its internal policies regarding the collection, storage and transfer of customer information.