MX: Grupo Financiero Banorte Fined $2m for Failure to Notify Customers of Security Breach (updated)

Liisa M. Thomas and Zachary L. Sorman of Winston Strawn write:

Mexico’s National Transparency, Information Access, and Data Protection Institute (INAI) recently announced an impending fine of almost $2 million USD to be levied against Grupo Financiero Banorte, the third largest bank in Mexico. According to a statement by an INAI official, the bank failed to immediately notify as many as 20,000 clients of a hack impacting their information.

Read more on Winston & Strawn. So far, I haven’t found anything else on this incident, but if I find anything, I’ll update this post.

Update (Sept. 28):  Katalina Bateman of Reed Smith also discusses this case, writing, in part:

The breach came about during an update to Banorte’s IT systems in late 2014 and early 2015 but was not detected until sometime later. Around 20,000 accounts are thought to have been compromised, including information of past customers which should have been deleted under Mexico’s privacy laws, but contradicting reports made by the bank make it unclear what was lost.

In Mexico, organisations that suffer a data breach must immediately notify their clients of the event. Banorte did notify the National Banking and Securities Commission (CNBV), as required under Mexican privacy laws, but then chose to inform only a number of premium customers rather than all individuals whose accounts were involved. The subsequent investigation by the CNBV found the bank in breach of data protection and privacy laws on two counts and a fine was applied.

Read more on Technology Law Dispatch.

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