Car Insurance Company Geico Falls Victim To Fraudsters
The latest company to have let itself fall victim to another data breach incident just recently is Geico.
The auto insurance company has released an announcement that fraudsters were able to target their system.
As a result, an unspecified number of Geico customers’ pieces of information have been compromised.
Online reports suggest that the hackers were able to hack Geico’s official website by taking advantage of a security bug.
Then, for a period of almost three months, starting from late January to early March this year, the hackers were able to collect driver’s license identification numbers of Geico customers.
As soon as the data breach was discovered, Geico was forced to reach out to the state of California’s attorney general’s office to report the data breach incident.
It is required by law that companies or entities report to the attorney general’s office incidents of mass-scale data breach incidents involving more than half a thousand affected state residents.
Additionally, the company’s IT and systems experts have introduced a patch to fix the security bug that caused the data breach in the first place.
The exact number of victims on the Geico Driver’s License Data Breach is yet to be made available to the public.
However, the insurance company has already started reaching out to affected customers via email and snail-mail.
Asked to give out a comment regarding the data breach incident that has plagued the auto insurer, a spokesperson from Geico has remained numb on the issue.
Yet, they have asked Geico consumers to remain vigilant and cautious of the possible data compromise incidents an affected individual might experience after the whole ordeal.
What Do Hackers Do To Data They Have Collected
Data security breaches are not a new phenomenon in the United States.
Almost every year, dozens upon dozens of companies fall victim to hackers and their evil and conniving ways.
These hackers use intricate pieces of technology in order to perpetrate series of attacks on the different databases to obtain an important treasure trove of information stored in it.
In this world that we’re living in right now, information can be considered as one of the most valuable assets and commodities out there.
One can do so much with the information handed to them. Companies use them to tailor fit advertisements to targeted audiences.
The government uses the information they have to create laws and regulations that would help run the country smoothly and efficiently.
Information is very powerful, and hackers and cyber fraudsters know this very well.
Thus they resort to illegal ways to obtain access to them and use them for their own profit.
Some use them to commit identity theft, while others ask for money in exchange for the return of the stolen troves of information.
In the latest Geico data breach incident, experts speculate that hackers targeted the company to use the driver’s license numbers it has to claim state unemployment benefits.
Most of the time, the state government asks for identification in order to release benefits claims like unemployment benefits.
Due to the negative economic impact of the COVID-19 (Coronavirus disease-2019) pandemic on the country, many hackers have noted that this is the perfect opportunity to strike to illegally collect information to make frivolous claims akin to fraud.
In fact, government authorities have shared that different state governments paid up to $36 billion in cash benefits attributed to fraudulent means.
About the company
The Government Employees Insurance Company simply referred to as Geico in this feature, is an American car insurance company headquartered in Maryland.
Established in 1936 in Texas, the company has since grown into a giant in the industry, selling more than 17 million policies in 2019.
It’s under its parent company Berkshire Hathaway and is headed by its CEO Todd Combs.
Editor’s Note on Geico Data Breach 2021:
This latest news article aims to provide you up-to-date information regarding the data breach car insurer Geico has fallen victim to, resulting in its customers’ license numbers getting stolen.
What are your thoughts on this piece? Please send us a message by clicking the ‘Contact Us’ button below! We’d love to hear back from you.
Suggested Article: RocketReach Data Privacy Class Lawsuit Details.