Yet Another Consequence of Lost Data: Government Investigations
Bank of New York Mellon experienced the loss of tapes as they were transported by a third party. The bank reported the tape may have contained unencrypted data on about 4.5 million people from 700 companies. That's a bad enough PR nightmare, then came the subpoenas.
The Hartford Courant reports:
Since then, New York Mellon has continued its investigation and, because the state had issued subpoenas, was obligated to tell state officials that the breach was larger than first thought.
A more recent report is that the tapes may have contained up to 12 million people's data.
Attorneys generals and other state officials must be getting tired of the same old plot line running through data loss stories: company looses data, company apologizes, customers get 2 years of free credit monitoring.
I'm betting its a good move for those on the executive career track to start listening to their IT staff who scream for better risk management and security procedures. Being named in a subpoena isn't exactly the kind of thing you want on your resume.
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