State Farm has begun notifying customers of a data security incident involving a third-party vendor’s misuse of customer data.
State Farm opened the investigation initially on January 21, 2016, looking into the employees of a State Farm independent contractor agent in Chino Hills, CA. Their investigation into the independent contractor found misappropriate use of customer funds in addition to the misuse of customer financial cards to make payments and/or replace customer payments that were not correctly applied to customers’ accounts or diverted.
State Farm claims the misappropriation of customer funds, misuse of customer financial cards, and accessing & changing customers contact information are among the information involved in this investigation. Additionally, some cases found information was used to add additional insurance coverage to a victim's account without the policyholders’ knowledge let alone their consent.
Since the incident, State Farm has terminated system access to the individuals associated with the misuse of customer data.
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