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Geico Customer Data Breach and Fraudulent Unemployment Claims
Geico Customer Data Breach and Fraudulent Unemployment Claims
May 10, 2021
Why This Alert Is Important

Data breaches are driven by the monetization opportunities for stolen data. Many states use driver’s license numbers or other state IDs as a means of validating online identities. Naturally, this makes auto insurers a target for data theft, so that
these identities can be exploited. The increase in government funding for unemployment claims has made fraudulent claims more lucrative. Challenges faced by overwhelmed state unemployment systems mean the risks are lessened. This opportunity means that retail insurers such as Geico are often
in the crosshairs


Insurance company Geico recently sent notifications of a data breach to its customers last week, indicating that an unknown number of driver’s license numbers were compromised during a six-week period early in the year. The notification advised Geico customers that these numbers might be used for fraudulent unemployment claims.

Expert Analysis
Daniel Sholler
Daniel Sholler
Product Marketing Manger, Data Privacy - Exterro

Data breaches are driven by profit. Any time there is a means of making money by using false identity information, it drives demand for that information,and provides an impetus for data breaches. In today’s economy, unemployment insurance fraud is a significant source of money, so thieves are searching for the kind of information that can open those doors.

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