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On October 21, 2024, Connecticut Attorney General William Tong announced a settlement with a banking fraud prevention company (the Company), resolving allegations related to a data breach that impacted the personal information of a Connecticut Bank’s customers. The Company uses behavioral analytics and machine learning to help prevent banking fraud for its client institutions, such as the Connecticut Bank at issue. These financial institutions provide the Company with customer information, including names, account numbers, and transaction information, which is precisely the type of information leaked during a data breach that lasted from November 2022 through January 2023. The settlement resolves allegations that the Company violated Connecticut’s privacy and consumer protection laws by failing to implement reasonable data security across its systems. Under the settlement, the Company agreed to strengthen its data security practices and pay a $500,000 fine. Separate from this investigation, the Company in June settled a class action lawsuit filed by impacted plaintiffs for over $1.4 million. |
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