Kaul: Anthem to pay Wisconsin nearly $142,000 for data breach that affected 1.7M residents

MADISON, Wis. (WMTV) - Insurance giant Anthem will pay Wisconsin just under $142,000 as part of a multi-state settlement stemming from its massive 2014 data breach, Attorney General Josh Kaul announced.

According to Kaul’s office, the breach affected 1,744,732 Wisconsin residents, possibly exposing their names, dates of birth, Social Security numbers, addresses, email addresses, phone numbers, and more.

In all, 78.8 million Americans were affected by the breach, sparking a joint investigation among 43 states, including Wisconsin, Kaul explained. That investigation resulted in a $39.5 million settlement across all the states, from which Wisconsin’s portion will be drawn. Anthem has also agreed to multiple data security and good governance provisions.

“Data breaches can cause long-term harm to consumers. Corporations that collect people’s personal information must carefully safeguard it,” Kaul said.

According to state Dept. of Justice, as part of the deal, Anthem has agreed not to misrepresent the extent to which it protects personal information, implement a comprehensive security program, meet specific security requirements such as two-factor authentication and encryption, and submit to third-party security assessments for the next three years.

Kaul notes Anthem has also offered affected Americans two years of credit monitoring. Additionally, the company entered into a class action settlement that created a $115 million fund for additional credit monitoring, cash payments up to $50, and reimbursements for out-of-pocket losses by consumers.