The Florida-based company that exposed millions of Social Security numbers to hackers last year is facing what appears to be its first fine from a US regulator—but it’s barely a slap on the wrist.
National Public Data is facing a $46,000 fine from the California Privacy Protection Agency, which announced the penalty on Thursday.
The agency also appears to be punishing the company more on a technicality rather than for losing an estimated 272 million Social Security numbers to hackers. In the announcement, the California regulator said it penalized the company “for failing to register and pay an annual fee” under the state’s data deletion law.
The regulator notes that California’s Delete Act requires data broker providers to register by January 31, 2024, and pay an annual fee that funds the California Data Broker Registry. If they don’t, then the companies face a fine of $200 per day.
In National Public Data’s case, the company registered on Sept. 18, or 230 days after the deadline, resulting in the $46,000 fine. The company also registered only after the agency contacted it when news of the SSN leak was making headlines.
It’s unclear if the regulator plans on penalizing the company further. The agency didn’t immediately respond to a request for comment. But in court filings, National Public Data itself indicated that attorneys general in all 50 states and the Federal Trade Commission are investigating the company for last year’s breach.
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National Public Data’s parent company, Jerico Pictures, tried to file for bankruptcy in a Florida court as it also faced a wave of lawsuits. But the judge rejected the bankruptcy filing after US Trustee for Florida, Mary Ida Townson told the court: “The Debtor [Jerico Pictures] lacks the income and resources to demonstrate a reasonable likelihood of rehabilitation.” Meanwhile, another court document showed the company only made a net profit of $865,149 on revenue of $1.2 million for 2023 and $475,526 in 2022.
Although it remains unclear if other regulators will take further action, National Public Data has shut down. Salvatore Verini, the owner of Jerico Pictures, didn’t respond to a request for comment.
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