TD Bank has offered its consent to a settlement with the Attorney General of New York related to a data breach in 2012 that involved the loss of two back up tapes containing financial data of its 260,000 customers nationwide.
The multi-state settlement requires the bank to pay a fine of $850,000 and reform its practices to prevent such cases in future.
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New York Attorney General Schneiderman said:"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."
Under the agreement, the bank will also have to notify state residents of any future security breaches or other acquisitions of personal information and ensure that backup tapes will not be transported without being encrypted.
The settlement also stresses on better training for all staff and a bi-annual review of security practices.
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