Infosys US unit accused of data breach by Bank of America

Infosys

Bank of America, one of the largest banks in the US, has blamed Infosys Technologies USA, a subsidiary of Indian IT major Infosys, for a data leak that exposed the personal information of 57,000 clients. The bank has filed a lawsuit against Infosys in a New York court, seeking damages and an injunction to prevent further breaches.

According to the lawsuit, Infosys was hired by the bank in 2020 to provide software development and maintenance services for its online banking platform. However, in November 2023, the bank discovered that Infosys had failed to secure a cloud storage account that contained sensitive data of its customers, such as names, addresses, account numbers, and social security numbers.
The bank alleged that the data was accessible to anyone with a link to the account, and that Infosys did not notify the bank of the breach until January 2024, after the bank had already notified the affected customers and regulators.
The bank claimed that Infosys had violated the terms of their contract, which required Infosys to comply with the bank’s security policies and standards, and to protect the confidentiality and integrity of the bank’s data. The bank also accused Infosys of negligence, breach of fiduciary duty, and fraud. The bank said that the data leak had caused it reputational harm, customer dissatisfaction, and regulatory scrutiny, and that it had incurred significant costs to remediate the breach and provide identity theft protection to its customers.

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Infosys has not yet responded to the lawsuit, but has said in a statement that it takes data privacy and security very seriously, and that it is cooperating with the bank to resolve the matter. Infosys also said that it has robust policies and procedures in place to ensure the security of its clients’ data, and that it regularly audits and monitors its systems and processes.

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This is not the first time that Infosys has faced legal troubles in the US, its largest market. In 2019, Infosys agreed to pay $800,000 to settle allegations that it had violated US visa rules by bringing foreign workers on short-term visas instead of hiring local workers. In 2013, Infosys paid $34 million to settle a similar case. In 2017, Infosys faced a class action lawsuit from its former employees, who alleged that the company had discriminated against them based on their race and national origin.

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Source : The Times Of India

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