Two different people are suing digital payments (opens in new tab) powerhouse Block and its own subsidiary Cash App Investing for allegedly failing woefully to properly protect sensitive personal data in a December 2021 data breach.
According to the lawsuit filed in a federal district in Oakland, California, both individuals saw unauthorized charges (opens in new tab) with their Cash App accounts, and spent several hours trying to repair the problem.
These unauthorized charges came due to a data breach (opens in new tab) in December 2021, whenever a former employee logged back to Cash Apps systems and downloaded internal reports which held private information. The data at fault took includes customers’ full names, brokerage account numbers, brokerage portfolio values, brokerage portfolio holdings, and perhaps, trading activity for just one trading day.
Now, theyre seeking damages, along with other punishment for the providers, arguing the business didn’t exercise reasonable care in securing and safeguarding consumer information. Whats more, theyre claiming the business didnt notify customers promptly, shared inadequate information regarding what had happened, and didn’t offer credit and identity monitoring services.
Block publicly disclosed the incident almost five months after it had happened – in early April 2022. In the past, it said that 8.2 million current and former customers were affected and that it had reached out to notify them of the incident.
The lawsuit doesnt detail just how the unwanted charges had become, or how they connect to the December data breach. In accordance with The Register, when Block first announced the info breach, it said the former employee didn’t steal usernames or passwords, or other sensitive private information.
We’ve reached out to Block for a comment and can update this article if we hear back from the business.
- They are the best ID theft protection services (opens in new tab) around
Via: The Register (opens in new tab)
Sead is really a seasoned freelance journalist located in Sarajevo, Bosnia and Herzegovina. He writes about any of it (cloud, IoT, 5G, VPN) and cybersecurity (ransomware, data breaches, regulations). In his career, spanning greater than a decade, hes written for numerous media outlets, including Al Jazeera Balkans. Hes also held several modules on article writing for Represent Communications.