The Proposed Marriott Fine for Starwood Data Breach Is Massive

The hotel operator may have to shell out more than $20M

A Starwood data breach may end up costing Marriott International (NASDAQ:MAR) a steep price as the proposed fine for the company exceeds the USD$120 million mark.

Starwood Data BreachThe breach has reportedly affected up to 339 million customers, which may result in the parent company paying a $124 million fine. It is believed that the breach has affected customers of the Starwood hotels group that date back to 2014, although knowledge of the breach was only made known starting last November.

Marriott acquired Starwood back in 2016, and the company said last year that the hotel chain’s guest records that tally up to roughly 339 million people had been accessed. Additionally, it is believed that more than 5 million unencrypted passport numbers were part of the information that was accessed.

The UK’s Information Commissioner’s Office (ICO) recommended the aforementioned sum for the Marriott fine. “We are disappointed with this notice of intent from the ICO, which we will contest,” CEO Arne Sorenson said in a statement.

The Starwood data breach may prove to be even pricier for the company as there are at least five U.S. states that are investigating the Marriott breach as of March. About 7 million of the customers whose data was accessed are located in the UK, per the ICO.

MAR stock is up about 0.9% on Wednesday following the news.


Article printed from InvestorPlace Media, https://investorplace.com/2019/07/starwood-data-breach-marriott-fine/.

©2020 InvestorPlace Media, LLC