On March 10, 2025, the Attorney General of New York filed a lawsuit against several insurance companies doing business as Allstate Insurance Company (“Allstate”) and National General for alleged violations of New York’s breach notification law, general business laws and consumer protection laws. The complaint alleged that National General (which was subsequently acquired by Allstate) (1) failed to secure consumers’ driver’s license numbers, (2) failed to notify affected consumers regarding an initial data breach, and (3) misrepresented its data security practices. The AG alleged that due to National General’s alleged failure to implement reasonable data security safeguards, the company’s auto insurance quote tools exposed driver’s license numbers to unauthenticated users, allowing these driver license numbers to be harvested in repeated bot attacks during two separate data breaches.
The first breach, which occurred between August and November 2020, exposed the driver’s license numbers of approximately 12,000 individuals, including more than 9,100 New Yorkers. The AG alleged that because National General had not implemented tools to block automated attacks or monitor potentially malicious activity on its consumer auto insurance quoting websites, National General did not detect the breach for over two months. According to the AG, after detecting the first breach, National General failed to notify affected individuals and relevant regulators and identify whether driver’s license numbers or other private information was exposed in other parts of National General’s environment. National General allegedly left consumers’ full driver’s license data exposed on a separate quoting tool that was available to a network of independent agents.
The second breach, which targeted National General’s independent insurance agent system, occurred around October 2020 but was not detected by National General until late January 2021. According to the AG, Allstate only reported the first incident to consumers and regulators after its acquisition of National General closed and the second breach had been detected. Specifically, Allstate began reporting the incident to relevant regulators in February 2021 and notified New York residents in April 2021. The second breach compromised the driver’s license numbers of more than 187,000 consumers, including approximately 155,000 New Yorkers. The complaint also alleges that National General misrepresented its data security practices to consumers in both a notice sent directly to insurance policyholders and its online privacy policy. The AG is seeking civil penalties, a permanent injunction and other equitable relief.
This lawsuit is part of a larger trend of New York’s AG taking action against auto insurance companies in connection with alleged security violations.
Search
Recent Posts
Categories
- Behavioral Advertising
- Centre for Information Policy Leadership
- Children’s Privacy
- Cyber Insurance
- Cybersecurity
- Enforcement
- European Union
- Events
- FCRA
- Financial Privacy
- General
- Health Privacy
- Identity Theft
- Information Security
- International
- Marketing
- Multimedia Resources
- Online Privacy
- Security Breach
- U.S. Federal Law
- U.S. State Law
- Workplace Privacy
Tags
- Aaron Simpson
- Accountability
- Adequacy
- Advertisement
- Advertising
- Age Appropriate Design Code
- American Privacy Rights Act
- Anna Pateraki
- Anonymization
- Anti-terrorism
- APEC
- Apple Inc.
- Argentina
- Arkansas
- Article 29 Working Party
- Artificial Intelligence
- Audit
- Australia
- Austria
- Automated Decisionmaking
- Baltimore
- Bankruptcy
- Behavioral Advertising
- Belgium
- Biden Administration
- Big Data
- Binding Corporate Rules
- Biometric Data
- Blockchain
- Bojana Bellamy
- Brazil
- Brexit
- British Columbia
- Brittany Bacon
- Brussels
- Business Associate Agreement
- BYOD
- California
- CAN-SPAM
- Canada
- Cayman Islands
- CCPA
- CCTV
- Chile
- China
- Chinese Taipei
- Christopher Graham
- CIPA
- Class Action
- Clinical Trial
- Cloud
- Cloud Computing
- CNIL
- Colombia
- Colorado
- Committee on Foreign Investment in the United States
- Commodity Futures Trading Commission
- Compliance
- Computer Fraud and Abuse Act
- Congress
- Connecticut
- Consent
- Consent Order
- Consumer Protection
- Cookies
- COPPA
- Coronavirus/COVID-19
- Council of Europe
- Council of the European Union
- Court of Justice of the European Union
- CPPA
- CPRA
- Credit Monitoring
- Credit Report
- Criminal Law
- Critical Infrastructure
- Croatia
- Cross-Border Data Flow
- Cross-Border Data Transfer
- Cyber Attack
- Cybersecurity and Infrastructure Security Agency
- Data Brokers
- Data Controller
- Data Localization
- Data Privacy Framework
- Data Processor
- Data Protection Act
- Data Protection Authority
- Data Protection Impact Assessment
- Data Transfer
- David Dumont
- David Vladeck
- Deceptive Trade Practices
- Delaware
- Denmark
- Department of Commerce
- Department of Health and Human Services
- Department of Homeland Security
- Department of Justice
- Department of the Treasury
- Department of Treasury
- District of Columbia
- Do Not Call
- Do Not Track
- Dobbs
- Dodd-Frank Act
- DORA
- DPIA
- E-Privacy
- E-Privacy Directive
- Ecuador
- Ed Tech
- Edith Ramirez
- Electronic Communications Privacy Act
- Electronic Privacy Information Center
- Electronic Protected Health Information
- Elizabeth Denham
- Employee Monitoring
- Encryption
- ENISA
- EU Data Protection Directive
- EU Member States
- European Commission
- European Data Protection Board
- European Data Protection Supervisor
- European Parliament
- European Union
- Facial Recognition Technology
- FACTA
- Fair Credit Reporting Act
- Fair Information Practice Principles
- Federal Aviation Administration
- Federal Bureau of Investigation
- Federal Communications Commission
- Federal Data Protection Act
- Federal Trade Commission
- FERC
- Financial Data
- FinTech
- Florida
- Food and Drug Administration
- Foreign Intelligence Surveillance Act
- France
- Franchise
- Fred Cate
- Freedom of Information Act
- Freedom of Speech
- Fundamental Rights
- GDPR
- Geofencing
- Geolocation
- Geolocation Data
- Georgia
- Germany
- Global Privacy Assembly
- Global Privacy Enforcement Network
- Gramm Leach Bliley Act
- Hacker
- Hawaii
- Health Data
- HIPAA
- HITECH Act
- Hong Kong
- House of Representatives
- Hungary
- Illinois
- India
- Indiana
- Indonesia
- Information Commissioners Office
- Information Sharing
- Insurance Provider
- Internal Revenue Service
- International Association of Privacy Professionals
- International Commissioners Office
- Internet
- Internet of Things
- Iowa
- IP Address
- Ireland
- Israel
- Italy
- Jacob Kohnstamm
- Japan
- Jason Beach
- Jay Rockefeller
- Jenna Rode
- Jennifer Stoddart
- Jersey
- Jessica Rich
- John Delionado
- John Edwards
- Kentucky
- Korea
- Latin America
- Laura Leonard
- Law Enforcement
- Lawrence Strickling
- Legislation
- Liability
- Lisa Sotto
- Litigation
- Location-Based Services
- London
- Louisiana
- Madrid Resolution
- Maine
- Malaysia
- Markus Heyder
- Maryland
- Massachusetts
- Meta
- Mexico
- Microsoft
- Minnesota
- Mobile
- Mobile App
- Mobile Device
- Montana
- Morocco
- MySpace
- Natascha Gerlach
- National Institute of Standards and Technology
- National Labor Relations Board
- National Science and Technology Council
- National Security
- National Security Agency
- National Telecommunications and Information Administration
- Nebraska
- NEDPA
- Netherlands
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- New Zealand
- Nigeria
- Ninth Circuit
- North Carolina
- North Korea
- Norway
- Obama Administration
- OCPA
- OECD
- Office for Civil Rights
- Office of Foreign Assets Control
- Ohio
- Oklahoma
- Online Behavioral Advertising
- Online Privacy
- Opt-In Consent
- Oregon
- Outsourcing
- Pakistan
- Parental Consent
- Payment Card
- PCI DSS
- Penalty
- Pennsylvania
- Personal Data
- Personal Health Information
- Personal Health Information
- Personal Information
- Personally Identifiable Information
- Peru
- Philippines
- Phyllis Marcus
- Poland
- PRISM
- Privacy By Design
- Privacy Policy
- Privacy Rights
- Privacy Rule
- Privacy Shield
- Profiling
- Protected Health Information
- Ransomware
- Record Retention
- Red Flags Rule
- Rhode Island
- Richard Thomas
- Right to Be Forgotten
- Right to Privacy
- Risk-Based Approach
- Rosemary Jay
- Russia
- Safe Harbor
- Sanctions
- Schrems
- Scott Kimpel
- Securities and Exchange Commission
- Security Rule
- Senate
- Sensitive Data
- Serbia
- Service Provider
- Singapore
- Smart Grid
- Smart Metering
- Social Media
- Social Security Number
- South Africa
- South Carolina
- South Dakota
- South Korea
- Spain
- Spyware
- Standard Contractual Clauses
- State Attorneys General
- Steven Haas
- Stick With Security Series
- Stored Communications Act
- Student Data
- Supreme Court
- Surveillance
- Sweden
- Switzerland
- Taiwan
- Targeted Advertising
- Telecommunications
- Telemarketing
- Telephone Consumer Protection Act
- Tennessee
- Terry McAuliffe
- Texas
- Text Message
- Thailand
- Transparency
- Transportation Security Administration
- Trump Administration
- United Arab Emirates
- United Kingdom
- United States
- Unmanned Aircraft Systems
- Uruguay
- Utah
- Vermont
- Video Privacy Protection Act
- Video Surveillance
- Virginia
- Viviane Reding
- Washington
- Whistleblowing
- Wireless Network
- Wiretap
- ZIP Code