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EyeMed Sees End in Sight for Litigation Over 2020 Breach

By Kim S. Nash

 

Hello. Vision benefits provider EyeMed agreed to pay $5 million to settle a consumer data-breach lawsuit stemming from a phishing attack in June 2020.

I’ve noticed a swing lately toward quicker settlements, often after two or three years of court gyrations for the simpler cases. But EyeMed’s situation wasn’t simple.

EyeMed has had to deal with a few complicated legal actions in the five years after its breach, which affected nearly more than two million people. The New York Department of Financial Services launched a case that found violations such as a lack of multifactor authentication, faulty data-disposal policies and an instance of nine employees sharing email credentials. The agency fined EyeMed $4.5 million in 2022. Several state attorneys general also sued the company, winning a $2.5 million settlement in 2023, and requiring EyeMed to improve cybersecurity and undergo regular security audits.

The consumer settlement, which is due for final court approval in December, calls for reimbursements for people who can prove monetary losses related to the breach, or $50 each with few questions asked.

More news below.

 

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More Cyber News

PHOTO: BRIAN SNYDER/REUTERS

Harvard University said "a small administrative unit" could have been breached through a cyberattack on Oracle's enterprise software. The Clop hacking group claimed to have stolen data from Harvard, as well as other Oracle customers. The school said it is investigating and has patched its Oracle system. (Bleeping Computer)

Takedown: German authorities said they recently seized more than 1,400 websites in Eastern Europe linked to investment scams. Some of the sites were created with AI to be convincing, investigators said. (Reuters)

U.S. lawmakers seek to end open research collaboration between American and Chinese scientists, citing national security concerns. More than 500 U.S. organizations have worked with Chinese military researchers in recent years in areas such as computer science, physics and geology, according to one intelligence report.

  • Sen. Tom Cotton (R., Ark.) has proposed a law to limit federal funding for work with certain Chinese groups associated with China's military. (Associated Press)

A $10 billion bet: JPMorgan Chase plans to invest $10 billion in U.S. national security companies, the financial giant said Monday. The focus will be on cybersecurity, quantum computing and AI, as well as the supply chains of critical minerals, robotics and pharmaceuticals, and energy independence and defense. (Security Week)

429

Number of hacking incidents the U.K.'s National Cyber Security Centre was asked to help with in the 12 months ending Aug. 31, half of which were serious enough to be considered of "national significance." (Reuters)

 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten, James Rundle and Catherine Stupp. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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