Bofa Data Breach 2024: Understanding the Impact on Customers and Mitigation Strategies

The Bank of America data breach in 2024 has left many customers feeling vulnerable and unsure of what to do next. Approximately 2.5 million customer records were compromised, including sensitive information such as Social Security numbers and account numbers.

The breach occurred due to a vulnerability in the bank's online platform, which was exploited by hackers. This highlights the importance of staying vigilant and regularly monitoring your accounts for suspicious activity.

Customers affected by the breach are advised to take immediate action to protect their identities and financial information. This includes monitoring their credit reports and credit scores for any unusual activity.

The Bank of America has taken steps to mitigate the damage, including offering free credit monitoring and identity theft protection to affected customers.

Bank of America notified 57,000 customers that their personal information has been compromised due to a data breach at Infosys McCamish System (IMS). This incident occurred after a third-party services provider data breach.

The breach happened on November 3, 2023, when an unauthorized third party accessed IMS systems, resulting in the non-availability of certain IMS applications. This incident was disclosed by Infosys in a filing with the SEC.

Infosys estimated the losses caused by the incident will be at least $30 million. The company restored the impacted systems by December 31.

The compromised data may include first and last name, address, business email address, date of birth, Social Security number, and other account information. Bank of America states that they are not aware of any misuse involving the compromised information.

Bank of America is providing a complimentary two-year membership in an identity theft protection service provided by Experian IdentityWorks to affected customers.

Managing third-party cyber risk is a complex task, and it's often impossible to completely protect against all forms of risk. Organizations need to consider not just risk-management or -assessment solutions, but also demand a software bill of materials (SBOM) from all third-party vendors to better assess and manage vulnerabilities.

This approach can help organizations take control before an attack even occurs, as suggested by Roger Neal, head of product at Apona Security. He notes that early detection of vulnerable components might have mitigated or prevented the Bank of America data breach in 2024.

Requiring third-party services to be hosted on-premises could also be a strategy to protect against such breaches, as it would give organizations more control over access to sensitive customer information.

Third-party cyber risk management is a critical aspect of any organization's cybersecurity strategy, and the consequences of neglecting it can be severe. A single data breach can lead to financial losses, damage to reputation, and loss of customer trust.

The causes of third-party cyber risk are often rooted in the complexity of modern supply chains, with organizations relying on numerous third-party vendors to deliver goods and services. This complexity creates an attack surface that is difficult to manage.

A study found that 60% of organizations have experienced a data breach due to a third-party vendor, highlighting the need for effective risk management strategies.

The consequences of third-party cyber risk are far-reaching, with 70% of organizations reporting that a data breach would have a significant impact on their business operations.

The average cost of a data breach due to third-party cyber risk is $1.4 million, making it essential for organizations to invest in robust risk management practices.

A lack of visibility into third-party vendor risk can lead to a lack of control over sensitive data, creating a vulnerability that can be exploited by attackers.

The impact of third-party cyber risk management on customers can be significant.

A data breach can lead to financial losses, as seen in the example of the 2017 Equifax breach, where hackers stole sensitive data of over 147 million people, resulting in estimated losses of $439 million.

Customers can also experience inconvenience and frustration due to service disruptions, such as the 2019 Capital One breach, which led to a 30-day freeze on affected customers' accounts.

In addition to financial losses and inconvenience, a data breach can also damage a company's reputation, making it harder for them to attract and retain customers.

The average cost of a data breach is $3.86 million, according to a study by IBM.

A strong third-party cyber risk management program can help mitigate these risks and protect customers' sensitive information.

Managing third-party cyber risk requires a proactive approach.

To mitigate these threats, consider implementing risk-management and risk-assessment strategies, as suggested by security experts and technology providers.

Demanding a software bill of materials (SBOM) from all third-party vendors can help assess and manage vulnerabilities.

Requiring hosting third-party services on-premises can provide more control over access to sensitive customer information.

Early detection of vulnerable components might have mitigated or prevented some incidents, as Roger Neal notes.

This approach can give organizations control before an attack even occurs.