August 29, 2008
Bank of New York Mellon Corp has revised upward the number of people affected by its previously disclosed data breach. The bank now says 12.5 million consumers could be vulnerable to identity theft, the largest data breach so far in 2008.
Previously, the bank said 4.5 million people might be vulnerable, due to missing data backup storage tapes. The tapes were discovered missing from third-party couriers working for the Company's BNY Mellon Shareowner Services and Working Capital Solutions businesses.
In a statement on its Web site, the bank apologized to all those affected, and said it is in the process of notifying individuals whose personal information may have been included on the tapes.
"At the time of the incidents, we said there were no indications that the data had been accessed or misused in any way -- and that remains the case," the bank said.
Mellon said it is providing comprehensive fraud protection assistance to individuals whose personal information may have been included on these back-up data storage tapes, including two years of free credit monitoring, $25,000 worth of identity theft insurance, reimbursement for the cost of one placement and one removal of a credit freeze for each of the three national credit reporting bureaus, and dedicated hotlines to respond to any consumer questions and assist with any concerns that these individuals might have.
That might not be enough to shield the bank from legal action. The governor of Connecticut, who was the one who broke the news of the initial data breach back in May, has not ruled out pursing fines, restitution and other remedies.
Connecticut officials revealed the break occurred on February 27, when Bank of New York Mellon could not account for as many as 10 data tapes. According to officials, the tapes were not encrypted and contained sensitive financial information about consumers, including names, addresses, birth dates and Social Security numbers.
