New York Settles First Security Breach Case

New York Attorney General Andrew M. Cuomo has reached the first settlement under New York's Information Security Breach and Notification Law.

CS STARS LLC, a Chicago-based claims management company, failed to notify the owner of computerized data and approximately 540,000 New York consumers that their personal information was at risk.

In May 2006, an employee at CS STARS noticed that a computer was missing that held personal information, including the names, addresses, and social security numbers of recipients of workers’ compensation benefits.

The company has agreed to implement precautionary procedures and comply with New York’s notification law in the event of another security breach.

Additionally, CS STARS will pay the Attorney General’s office $60,000 for costs related to this investigation.