First American Title Insurance has reached a settlement with New York State, agreeing to pay $1 million in relation to a data breach incident. This settlement comes in the context of growing concerns over cybersecurity in the financial services sector, highlighted by a recent suspected ransomware attack on Fidelity National Financial, one of the largest title insurance companies in the United States.
Fidelity National Financial, headquartered in Jacksonville, Florida, experienced operational disruptions after an alleged ransomware actor accessed its systems and extracted credentials. The company is currently evaluating the financial and operational repercussions of the attack, as per its filing with the Securities and Exchange Commission.
This incident underscores the ongoing efforts to enhance cybersecurity measures in critical infrastructure sectors, including financial services. Recently, the Federal Trade Commission amended its rules, mandating non-bank financial services firms to report data breaches affecting over 500 customers. Additionally, the Securities and Exchange Commission is on the verge of implementing new incident disclosure requirements for publicly traded companies.
The breach at First American was identified in May 2019 when a vulnerability in its EaglePro system was discovered. This flaw allowed unauthorized access to sensitive documents without needing authentication. An investigation revealed that approximately 885 million documents were exposed, including personal information like Social Security numbers, driver’s licenses, and banking details. This exposure was confirmed before it was reported by a cybersecurity journalist.
First American has responded to the settlement, expressing its commitment to secure and efficient real estate transactions in New York.
In response to growing cybersecurity threats, New York State has recently updated its cybersecurity regulations. These enhancements focus on improved governance, training, and the obligation to report ransomware payments. Companies are now required to conduct regular risk assessments, encompassing disaster planning, incident response, and business continuity planning, to strengthen their cybersecurity posture.
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