BoNY 4.5 Million Consumer's Data Loss

This just in from the "when will they ever learn" file. The Bank of New York (BNY Mellon) waited 8 weeks after the Connecticut legal requirement to inform the public of this very serious data loss involving personal information which was unencrypted. "On February 27, 2009, BNY Mellon was transferring a load of computer tapes containing information including names, addresses, dates of birth and Social Security numbers, when it lost a tape carrying data on about 4.5 million people. Under Connecticut state law, banks are required to immediately notify customers when such information is l ost , but BNY Mellon did not notify People’s of the true extent of the breach until mid-May, some eight weeks later." This is the second major data loss incident this year for the Bank of New York who is the world's largest custodian of assets. According to a statement released by the bank involving this second data security breach on April 29th: "... a backup data-storage tape containing images of scanned checks and other payment documents was lost while being moved from Philadelphia to Pittsburgh, spokesmen for the bank said Friday. It involved data of 47 institutional clients..." Two time loser overall and two time loser of unencrypted data. Even worse, with BoNY apparently violating a Connecticut law by failing to report the data breach within the required timely manner, it has now brought the wrath of the states' governor who requested subpoenas to be issued related to the loss of bank customer data being transported. Compounding the multiple events of data loss of unencrypted, highly sensitive consumer data is the suspicion that BoNY attempted to break the law by not informing consumers in a timely manner. Is it perhaps because BoNY Mellon did not actually know just who's data was lost so they were unable to notify the correct individuals negatively impacted by these data losses ?: "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." Well it seems the governor also wants the facts straight for the record as well: "... subpoenas seek details about the extent of the data breach, the timeline and conditions surrounding the tape loss, copies of any law enforcement or security reports filed following the loss, the names and addresses of all Connecticut customers whose names were included in any of the missing files and other pertinent facts." Meanwhile, a class action lawsuit has been filed seeking 7 years of credit monitoring services for the 40 individuals represented. The Bank of New York (BNY Mellon Corp.) has, to their credit, offered 1 year of free credit monitoring services to any one who has been negatively impacted. So, our tip for today is directed towards any of the 4,500,000 individuals who may have been needlessly exposed to the potential for identity theft and credit fraud. Contact the Bank of New York immediately to seek more information on safeguarding your accounts as well as to get details of their 1 year of free credit monitoring offer . (212) 495-1784 -or- (412) 234-5000 Finally, make sure to tell a friend or associate of this important development involving the opportunity for large scale identity theft so they may also seek immediate preventative action. PS: With such a large scale, repeated data loss involving the industry leader in assets data, credit monitoring alone will not protect you from identity theft - here's why . This article may be published in it's entirety on your site. Article courtesy of

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This episode was published on May 31, 2008.

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