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Insurer Gets Fined for Slow Breach Notification

July 6, 2011

Indiana Attorney General Greg Zoeller announced on Tuesday that an Indiana-based insurer will pay a $100,000 fine and take other steps for waiting months to notify 32,000 customers of a data breach. The Associated Press reports that Wellpoint has agreed to pay the fine; provide up to two years of credit monitoring and identity theft protection to affected customers, and reimburse up to $50,000 for breach-related losses. "This case should be a teaching moment for all companies that handle consumers' personal data," said Zoeller. A Wellpoint spokeswoman said the company has made security changes to prevent further breaches.
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