NEW YORK (Reuters) - Hilton Worldwide Holdings Inc agreed to pay $700,000 and bolster security to resolve probes into two data breaches that exposed more than 363,000 credit card numbers, the attorneys general of New York and Vermont announced on Tuesday.
The settlement resolves claims that the hotel chain lacked reasonable data security and was too slow to tell consumers about the intrusions, waiting 9-1/2 months after learning of the first and more than three months after learning of the second.
New York Attorney General Eric Schneiderman said a breach occurred in late 2014 when a Hilton system in the United Kingdom began communicating with a suspicious outside computer, while another occurred in the spring and summer of 2015.
The McLean, Virginia-based company did not tell consumers about the breaches until Nov. 24, 2015, according to Schneiderman and his Vermont counterpart, T.J. Donovan.
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Credit reporting company Equifax Inc. corporate offices are pictured in Atlanta, Georgia, U.S., September 8, 2017. REUTERS/Tami Chappell
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Katherine Archuleta, director of the U.S. Office of Personnel Management (OPM), speaks during a House Oversight and Government Reform Committee hearing on the OPM data breach in Washington, D.C., U.S., on Wednesday, June 24, 2015. U.S. senators said yesterday they doubt the government's personnel office understands the breadth of a computer hack that exposed the records of more than 4 million federal workers, or that the agency can stop another breach. Photographer: Andrew Harrer/Bloomberg via Getty Images
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PORTLAND, ME - AUGUST 15: Shaws on Congress Street on Friday, July 15, 2014. Shaws parent company is investigating a possible data breach. (Photo by Logan Werlinger/Portland Press Herald via Getty Images)
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Tuesday's settlement requires Hilton to disclose breaches faster, improve monitoring for potential threats, and adhere to data security standards used in the card industry.
New York will receive $400,000 from the settlement, and Vermont will receive $300,000. The offices of their attorneys general were not immediately available for further comment.
Hilton's brands also include Conrad, DoubleTree, Embassy Suites, Homewood Suites and the Waldorf Astoria, among others.
"Two years ago, Hilton took action to eradicate unauthorized malware that targeted guest payment card information," Hilton said in a statement. "Hilton is strongly committed to protecting our customers' payment card information and maintaining the integrity of our systems."
(Reporting by Jonathan Stempel in New York; editing by Diane Craft)