Capitol One is being slap with an $ 80 million dollar amercement for its persona in a 2019 severance that exposed the data point of over 100 million customers . According toa statementissued Thursday by the Office of the Comptroller of Currency ( OCC)—the wing of the US Department of Treasury meant to modulate all thing bank — Capitol One did n’t just have lax security practices , but it knew they were deficient and hide its self - made mess from examination for years before the whole affair blew up in its face .
translate through the OCC ’s owninvestigationthat conduct up to the mulct , the results are … unflattering for Capital One , to say the least . Since the bank pivot to being acloud - based enterprisein 2015 , their own intragroup audits of these new system entirely glossed over some of the glaring potholes that can come packaged with these kind of data memory organisation . Not only that , but whatever audit detail they did excrete onto their oversight citizens committee at the time completely failed to “ in effect account on and highlight place weaknesses and gaps,”deliberately or otherwise . On top of all that , the doc points out that for sure security concerns auditor raised , Capitol One ’s board “ go bad to take effectual actions to concord management accountable , ” even when they promise they would . Whoops !
In the end , this was the sort ofass - draggingbehavior that would result in one of the most high - visibility depository financial institution heists to date . In 2019 , demode - Amazon engineer Paige Thompsonsnuck throughCapital One ’s shit security and acquire her hands on 140,000 Social Security bit and 80,000 camber news report number . Since then , the company’ssaidthat it ’s “ invested significant extra resourcefulness into further beef up our cyber defenses . ”
Photo: Johannes Eisele (Getty Images)
away from this , the OCC is also mandate that the banking chain name a three - or - more - person “ compliance commission ” by the end of this month , the majority of whose fellow member ca n’t be employees of Capitol One or its affiliates — likely since , y’know , they ’ve try themselves to be less - than - proactive in the past . This committee ’s congeal to have meeting every one-fourth , with the first happening this coming October , when they ’re expected to acquaint a full , write programme of how they ’re go to keep up with the OCC ’s cybersecurity ( and the Board ’s ) standards displace forward .
Of naturally , $ 80 million might fathom like a lot , but as usual , this is only a fraction of a fraction of a fraction of the company ’s overall bottom line — which , as theyproudly toldinvestors , reached a criminal record - break-dance $ 28.6 billion for 2019 . ( Profits have since dipped , but as a resultant of the global pandemic . ) In the end , none of that hard cash — and none of the fine — is give-up the ghost to make its style to the millions that were really come to by this bay window ’s perfect , obvious neglectfulness . Instead , according to the OCC , it ’ll be paid to the US Department of Treasury .
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