Vermont to pay for identity protection in 1099-G data breach

MONTPELIER, Vt. (WCAX) - The state will pay for identity protection for all Vermonters who received unemployment benefits last year as it works to contain the fallout from a massive mailing error.

The state is finalizing a contract with a vendor to protect identities after the Vermont Department of Labor mistakenly sent out tax documents containing personal information to the wrong people.

That means more than 80,000 Vermonters will be able to sign up for identity protection next week.

The state will reach out to you with further instructions on how and where to apply.

Gov. Phil Scott says the state is working to prevent further damage and make sure it doesn’t happen again.

“As soon as the person enrolls, the protection will be retroactive to the date of the breach. My hope is that this will provide some reassurance though I don’t know, this doesn’t come close to making up for the harm and worry this has caused Vermonters,” said Scott, R-Vermont.

Because the state has cyber insurance, the state will have to pay a $250,000 deductible.

Officials say claimants are also encouraged to contact the three major credit bureaus to place a security freeze on their credit.