State sues Accenture for data loss
Connecticut has sued its computer consultancy for negligence over data loss.
CONNECTICUT – US State Connecticut has sued its own computer consultancy Accenture for undisclosed damages over the loss of nearly 460 state-agency bank account numbers and personnel data of 58 individuals. Connecticut attorney general Richard Blumenthal announced that he is suing the company for illegal negligence, unauthorized use of state property, and breach of contract.
A computer backup tape stolen in Ohio contained confidential data copied by Accenture and taken out of state in violation of its $98 million contract. An Accenture employee is believed to have violated company security rules by transferring the data to Ohio, where the consultancy is developing a similar financial data system to the one it produced for Connecticut. The theft was possible because of Ohio's low-tech system of data protection.
Accenture is conducting its own review of the incident and released a statement: “Based on what we know today, we believe that our policies were inadvertently not followed," the statement read. “We intend to take appropriate actions with any individuals involved and to reinforce with all of our employees, as we do on a regular basis, the importance of following our privacy and data protection policies.”
Although Comptroller Nancy Wyman was keen to point out that Connecticut's data is backed up nightly on computer at the University of Connecticut, a private vendor securing copies and safeguarding data for banks and insurance companies, the full ramifications of the theft have yet to be realised.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
The Emir error reports that cost banks millions
Dealers lambast onerous EU requirement to notify clients of all errors and omissions
Basel stops short on wrong-way risk
New guidelines a step in right direction, but experts warn they won’t prevent another Archegos
Trump 2.0 bank supervision: simpler but no soft touch?
Republican FDIC vice-chair Travis Hill wants more focus on financial risk instead of process
Iosco mimics industry codes to tackle pre-hedging dilemma
Advocates breathe sigh of relief, but Iosco release carries suggested restrictions
Ice’s AFX swoop shines spotlight on Ameribor prospects
CEO John Shay steps down after exchange group buys firm for mortgage and index synergies
Barr’s Fed exit likely to delay, but not destroy, Basel III
Market risk, op risk and leverage ratio all in the sights of Barr’s potential successors
FCMs call for more oversight of self-clearing CCP members
Clearing firms worry that PTFs and market-makers joining CCPs en masse will increase systemic risk
Complex EU active account reporting could drive trades out of UK
Draft Emir rules might not force large volumes to move to EU, but will make compliance difficult