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The New York State Division of Monetary Companies issued a $4.25 million penalty in opposition to OneMain Monetary Group on Wednesday after discovering that the subprime lender maintained poor cybersecurity practices, akin to permitting workers and different trusted customers, together with distributors, to make use of default passwords on accounts with entry to non-public buyer data.
In its Thursday morning announcement concerning the penalty, the division mentioned OneMain additionally didn’t successfully handle dangers posed by third-party service suppliers, handle entry privileges and preserve a proper utility safety improvement methodology, in violation of the division’s cybersecurity laws.
The penalty got here after an examination by the division of the cybersecurity insurance policies that OneMain maintained from December 2016 to the top of March 2020. Throughout that interval, the division discovered a minimum of three situations of knowledge breaches at OneMain.
Adrienne Harris, New York banking superintendent, mentioned the settlement with OneMain “demonstrates the division’s dedication to upholding the accountability of licensees,” notably once they have entry to New Yorkers’ private monetary data.
A spokeswoman for OneMain mentioned the corporate was “happy to have resolved this historic matter,” which it “has lengthy since addressed.” She mentioned OneMain is “dedicated to being a pacesetter in cybersecurity” and would proceed investing in its knowledge safety packages.
“Cybersecurity is an evolving space, and we intend to proceed our give attention to enhancing our capabilities to fulfill dangers as they come up sooner or later, in accordance with finest practices for our trade and in cooperation with our regulators,” the spokeswoman mentioned.
The spokeswoman acknowledged that OneMain did allow workers to share privileged accounts that had entry to buyer data and that these accounts have been allowed to make use of the default passwords they have been initially arrange with. These dangers “resulted in zero buyer hurt,” she mentioned.
OneMain, which the division mentioned within the consent order had $4.37 billion in annual income and a couple of.45 million buyer accounts in 2021, acknowledged that it has suffered a number of cybersecurity incidents and knowledge breaches lately. In 2018 alone, the corporate suffered a minimum of 4 knowledge privateness incidents.
One among these incidents concerned just one individual’s non-public data, in line with a nonprofit that tracks knowledge privateness incidents. One other concerned hackers compromising OneMain buyer emails to entry their account data, in line with notices despatched to New Jersey clients. The division outlined two different incidents from 2018 and one from 2020 within the consent order in opposition to OneMain.
The OneMain spokeswoman mentioned of the info privateness incidents it had suffered since 2018, “we’re not conscious of any clients who have been harmed by any of those incidents.” Nonetheless, OneMain has despatched notices to clients telling them that their private data had been compromised on a minimum of two events since 2018.
One set of notifications went to New Jersey residents in 2018; the opposite set went to California residents in 2022. The corporate didn’t specify what number of clients acquired these letters.
Along with the $4.25 million penalty it is going to pay, OneMain should additionally write insurance policies designed to remediate the cybersecurity shortcomings recognized within the consent order and, as soon as executed, submit a report back to the division to show it had completed so.
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