NY company agrees to $3 million settlement over outsourcing

NEW YORK (AP) — New York’s attorney general is announcing a $3.1 million settlement with a document imaging company that illegally outsourced work to India.

Attorney General Eric Schneiderman announced the settlement with Focused Technologies Imaging Services on Thursday.

Schneiderman says the Albany-area company outsourced government-funded work to a subcontractor in Mumbai, India in 2008 and 2009.

The contract involved digitizing and indexing fingerprint cards.

Schneiderman says the company unlawfully sent personal information of over 16 million people to a foreign business that was unauthorized to receive the information.

But he says there’s no evidence that the Indian company used anyone’s personal data or sent it to a third party. The Indian company cooperated with the investigation.

The company says in a statement that it acknowledges its error in judgment.

“Everything from our banks to our critical infrastructure are at risk for damaging cyber-attacks like never before, and we must step up our counter-hacking game ASAP to deal with threats from places like Iran and would be terrorists. As the Iranian attack on the Westchester dam shows, a particularly neglected area is critical infrastructure—dams and power grids—and we must increase our focus on protecting them.”— U.S. Senator Charles E. Schumer

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