[ISN] Bank loses tapes with data on 4.5M clients

From: InfoSec News (alerts@private)
Date: Sat May 31 2008 - 01:22:55 PDT


By Brian Fonseca
May 30, 2008 

Bank of New York Mellon Corp. officials last week confirmed that a box 
of unencrypted data storage tapes holding personal information of more 
than 4.5 million individuals was lost more than three months ago by a 
third-party vendor during transport to an off-site facility.

The bank informed the Connecticut State Attorney General's Office that 
the tapes belonging to its BNY Mellon Shareowner Services division were 
lost in transport by off-site storage firm Archive America on Feb. 27. 
The missing backup tapes include names, birth dates, Social Security 
numbers, and other information from customers of BNY Mellon and the 
People's United Bank in Bridgeport, Conn., according to a statement by 
Connecticut Attorney General Richard Blumenthal.

Archive America refused to comment about the missing backup tape, citing 
confidentiality agreements. A People's United Bank spokesman could not 
be reached for comment.

BNY Mellon Shareowner Services, which includes handling employee stock 
option plans, said that it has begun notifying affected clients. It 
contended that none of the unencrypted data has been accessed or used.

"We'd like to provide people with a more current characterization [of 
what happened], but we are not yet in a position to make that 
available," said BNY Mellon spokesman Ron Sommer. "Our intention is to 
make it available as soon as we can."

Blumenthal said that the bank's offer of a year of freed credit 
monitoring to those affected by the breach is "grossly inadequate." He 
also slammed the bank for not promptly notifying customers of the 
security breach.

"The loss of this tape . so far unrecovered and unremedied . is 
inexplicable and unacceptable," wrote Blumenthal. "I am especially 
concerned by the delay in informing customers, possibly heightening the 
risks of wrongdoing."

Blumenthal said that he is working with the New York and New Jersey 
attorneys general and the Connecticut Department of Consumer Protection 
to investigate the breach. Further, he said that he is pressing the bank 
to explain how some backup tapes disappeared while others on the same 
van arrived intact at the Archive America facility.

This week, a lawyer representing 40 affected individuals filed a 
class-action lawsuit against the New York bank in Connecticut Superior 
Court. Attorney Michael Stratton, who represents the plaintiffs, said he 
is seeking up to seven years of free credit monitoring and credit 
insurance for customers, along with unspecified damages.

"It's inconceivable to me that you have unencrypted data on tapes being 
transported and stored. I can't imagine why you wouldn't have a 
sophisticated encryption program to make it virtually impossible to 
break the code even if they were to become lost," remarked Stratton.

Attend Black Hat USA, August 2-7 in Las Vegas, 
the world's premier technical event for ICT security experts.
Featuring 40 hands-on training courses and 80 Briefings 
presentations with lots of new content and new tools.
Network with 4,000 delegates from 50 nations.  
Visit product displays by 30 top sponsors in 
a relaxed setting. http://www.blackhat.com

This archive was generated by hypermail 2.1.3 : Sat May 31 2008 - 01:31:26 PDT