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Texas spends more than $1.8 million to clean up data breach

| Apr 28, 2011 | Firm Case News

The comptroller spent $1.2 million just in mailing out letters to those affected, as well as $393,000 to set up a call center, and $290,000 to Gartner and Deloitte to examine the agency’s information security policies and procedures, according to a report in the Austin American-Statesman newspaper.

The comptroller has also negotiated discounts for fraud-related assistance, including credit monitoring, social security number protection, internet surveillance, and $10,000 of identity theft insurance, with CSIdentity and Experian. And lawsuits could add to the costs, the newspaper noted.

Earlier this month, the comptroller fired four employees over the data breach, including the head of information security and the head of innovation and technology at the agency.

“I and other Texans whose personal data was potentially exposed need to feel confident that an incident like this will never happen again. We will follow our consultants’ advice and do everything in our power to ensure that information entrusted to state government is secure”, said Texas Comptroller Susan Combs in a statement.

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