Infosys Unit Fined $1,25,000 in US Cybersecurity Breach Settlement

Infosys McCamish Systems (IMS), a US-based subsidiary of Infosys BPM, has entered into a settlement with the State of Vermont’s Department of Financial Regulation following a data breach that occurred in 2023. The breach led to compromised systems and delayed notifications to affected clients, prompting regulatory action and monetary penalties.

$1,25,000 Penalty Imposed on Infosys McCamish

IMS has been ordered to pay a $1,25,000 penalty after it failed to provide timely and accurate information during a cybersecurity incident investigation carried out by Vermont's Department of Financial Regulation. The incident, reported in 2023, disrupted application availability and impacted a broad range of IMS customers in the financial services sector. Notably, the company opted for a voluntary settlement without admitting to the alleged violations under a stipulation and consent order.

Background of the 2023 Cybersecurity Breach

The cybersecurity incident at IMS led to a significant disruption of services, delaying functionality for life insurance and annuity product platforms. The breach prompted scrutiny from state regulators, who noted ISS's sluggish response in communicating with affected data owners and regulatory entities. This delay raised concerns over compliance with data protection and cybersecurity standards applicable to financial service providers.

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Previous Class-Action Settlement 

Earlier, in March 2025, IMS contributed $17.5 million to a settlement fund to resolve class-action lawsuits linked to the same cybersecurity event. The lawsuits were filed by affected customers, and the settlement included claims against both IMS and several of its partner firms. These back-to-back settlements highlight the ongoing financial and reputational toll the breach has had on Infosys’ US operations.

Implications for Infosys BPM and Legal Landscape Ahead

With increased regulatory focus on data protection in the US, especially across the financial services technology segment, firms like IMS are under greater pressure to maintain strict security protocols. This incident reveals the high costs associated with failing to meet regulatory response expectations in crisis scenarios.

Infosys Share Price Performance

On July 17, 2025, Infosys share price opened at ₹1,598.00 on NSE, below the previous close of ₹1,607.90. During the day, it surged to ₹1,610.00 and dipped to ₹1,590.10. The stock is trading at ₹1,597.50 as of 11:37 AM. The stock registered a moderate decline of 0.65%.

Over the past week, it has moved up by 0.16%, over the past month, it has declined by 1.29%, and over the past 3 months, it has moved up by 14.12%.

Conclusion

Infosys McCamish Systems’ $1,25,000 fine by Vermont authorities marks another chapter in the aftermath of the 2023 cybersecurity breach. Combined with a $17.5 million class-action settlement earlier this year, the incident underscores the legal and compliance risks tied to delayed disclosures and inadequate cybersecurity responses.

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