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NY AG: WEGMANS TO PAY $400K FOR DATA BREACH THAT EXPOSED MILLIONS' PERSONAL INFO


ALLEGEDLY, THE GROCERY CHAIN KEPT CUSTOMERS' PERSONAL INFORMATION STORED IN
MISCONFIGURED CLOUD CONTAINERS THAT MADE IT EASY FOR HACKERS TO ACCESS THE
INFORMATION.

PUBLISHED JUNE 30, 2022 • UPDATED ON JULY 1, 2022 AT 6:09 AM



Gabby Jones/Bloomberg via Getty Images

A customer pushes a shopping cart outside of a Wegmans Food Markets Inc.
supermarket (Photographer: Gabby Jones/Bloomberg via Getty Images)

Grocery chain Wegmans will pay $400,000 in penalties to New York, as well as
upgrade its data security practices, following an data breach that exposed the
personal information of more than three million customers nationwide, including
more than 830,000 New Yorkers, according to the state's attorney general.

The compromised information included usernames and passwords to Wegmans
accounts, customers' names, emails, addresses and other data fro, drivers'
license numbers, according to according to New York Attorney General Letitia
James.

“Wegmans failed to safely store and seal its consumers’ personal information,
instead it left sensitive information out in the open for years,” James said.
“Today, Wegmans is paying the price for recklessly handling and exposing
millions of consumers’ personal information on the internet. In the 21st
century, there’s no excuse for companies to have poor cybersecurity systems and
practices that hurt consumers.”

According to the attorney general, in April 2021, a security researcher told
Wegmans that a cloud storage container was left unsecured and open to public
access, possibly exposing consumers’ sensitive information. The container was
allegedly misconfigured from its creation in January 2018 until April 2021, and
at some point an unauthorized actor could have accessed and cracked account
credentials. In May 2021, Wegmans discovered a second cloud storage container
with customers' personal information that was also misconfigured. The following
month, Wegmans began informing the customers whose personal information was
compromised.

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> New York newsletters.

According to the attorney general's office, Wegmans will adopt new measures, on
top of the thousands of dollars it agreed to pay. Some of the measures include:

 * Keeping an information security program that includes regular updates to keep
   pace with changes in technology and security threats;
 * Reporting security risks to the company's leadership;
 * Maintaining appropriate asset management practices, including maintaining an
   inventory of all cloud assets;
 * Establishing policies and procedures to ensure all cloud assets containing
   personal information have appropriate access controls to limit access to such
   information;
 * Developing a penetration testing program that includes at least one annual
   comprehensive penetration test of Wegmans’ cloud environment;
 * Establishing appropriate password policies and procedures for customer
   accounts, including encouraging customers to use strong passwords, educating
   customers on the benefits of multifactor authentication, and prohibiting
   password reuse;
 * Maintaining a reasonable vulnerability disclosure program that allows third
   parties, such as security researchers, to disclose vulnerabilities;
 * Establishing appropriate practices for customer account management and
   authentication, including notice, a security challenge, or re-authentication
   for account changes; and,
 * Updating its data collection and retention practices.

In a statement to News 4 New York, the supermarket chain said it takes security
seriously and that it has improved its processes after the breach was
discovered, although there was no evidence that the data was accessed improperly
or misused.


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"Wegmans takes security of customer information very seriously and immediately
remedied the situation once it was discovered," the supermarket chain said in
its statement. "We have improved our processes to better protect customer
information in the future. While we do not agree with some of the conclusions
drawn by the attorney general, we cooperated fully in the investigation and are
glad it has been concluded."  

Wegmans went on to say: "This was a configuration issue with two cloud storage
containers, and did not involve any other part of the Wegmans network.  This
type of configuration issue is common, unfortunately, and Wegmans has redoubled
its efforts to avoid the issue in the future.  There was also no indication that
customer data was accessed improperly or otherwise misused.  No customer credit
card or other sensitive data was involved."

THIS ARTICLE TAGGED UNDER:

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