MBIA data breach may impact thousands of local U.S. governments

Company waited two weeks to react to breach

The data leak announced on Tuesday at Municipal Bond Insurance Association, the nation’s largest bond insurer, compromised the data of thousands of local U.S. government entities, according to an article in Reuters.

The article explained that although the company was notified about the server breach two weeks ago, it did not react to the problem until yesterday.

“We have been notified that certain information related to clients of MBIA’s asset management subsidiary, Cutwater Asset Management, may have been illegally accessed,” MBIA spokesperson Kevin Brown said in a statement to HousingWire. “We are conducting a thorough investigation and will take all measures necessary to protect our customers’ data, secure our systems, and preserve evidence for law enforcement.” 

The affected clients were from states including Texas, New Hampshire, Indiana, Connecticut and Louisiana. There were a few hundred to a thousand entities compromised from each state. The largest account that Seely found was for the Louisiana Asset Management Pool (LAMP), which totaled $505 million.

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