March 11, 2025 – New York, NY: New York Attorney General Letitia James has filed a lawsuit against Allstate Corporation and its subsidiary, National General Insurance, alleging failure to protect consumers’ personal information during two significant data breaches.
The breaches occurred between 2020 and 2021, compromising the driver’s license numbers of over 165,000 New Yorkers. Attackers exploited vulnerabilities in National General’s online auto insurance quoting tools, which were designed to display full driver’s license numbers in plain text during the quoting process.
The first breach, spanning from August to November 2020, went undetected for months, and affected individuals were not notified. A subsequent, larger breach was discovered in January 2021.
Attorney General James asserts that National General’s inadequate cybersecurity measures violated New York’s Stop Hacks and Improve Electronic Data Security (SHIELD) Act and consumer protection laws.
The lawsuit seeks civil penalties of $5,000 per violation, potentially amounting to hundreds of millions of dollars, and aims to compel the companies to implement stronger data security protocols.
Companies must prioritize cybersecurity to protect consumers from fraud and identity theft. Failing to do so is unacceptable and will be met with accountability.
This legal action underscores the critical importance of robust cybersecurity measures in safeguarding personal information.
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