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Capital One to Pay $80 Million Penalty Over Hack in OCC Accord

Aug. 6, 2020, 3:05 PM

Capital One Financial Corp. agreed to pay $80 million in penalties and improve its cybersecurity practices to resolve probes into last year’s hack that exposed personal financial information on more than 100 million Americans.

Capital One’s board of directors will be required to establish a compliance committee by the end of the month with at least three members who aren’t officers of the bank. The lender will also have to craft plans that document the expected and potential threats created from using technology, according to orders from the Office of the Comptroller of the Currency and the Federal Reserve.

“Safeguarding our customers’ information is essential to our role as a financial institution,” Capital One said in a statement. “In the year since the incident, we have invested significant additional resources into further strengthening our cyber defenses, and have made substantial progress in addressing the requirements of these orders.”

In crafting the consent order, the OCC said it “positively considered” Capital One’s efforts to notify customers and remediate the impacts of the breach.

In July 2019, Capital One announced a hacker was able to tap into the vast trove of data on Amazon.com Inc. servers the bank was using, siphoning off sensitive information on more than 100 million Americans. Federal authorities later arrested and charged Paige A. Thompson with illegally accessing the bank’s files.

Read more about the Capital One hack

Capital One was among the first financial institutions to publicly tout its move to the cloud. Since the hack, the firm has sought to shore up its cybersecurity practices and hired Andy Ozment from Goldman Sachs Group Inc. earlier this year as head of technology risk.

To contact the reporter on this story:
Jenny Surane in New York at jsurane4@bloomberg.net

To contact the editors responsible for this story:
Michael J. Moore at mmoore55@bloomberg.net

Jesse Westbrook

© 2020 Bloomberg L.P. All rights reserved. Used with permission.

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