Two people are suing digital payments (Opens in a new tab) powerhouse Block and its subsidiary Cash App Investing alleging their failure to properly protect sensitive personal data in the December 2021 data breach.
According to the lawsuit filed in a federal district in Oakland, California, the two people saw “unauthorized accusations”. (Opens in a new tab)to their cash app accounts, and they spent many hours trying to fix the problem.
These unauthorized charges came as a result of a data breach (Opens in a new tab) In December 2021, when a former employee logged back into the Cash App systems and downloaded internal reports containing personal information. The data taken by the perpetrator includes the full names of clients, brokerage account numbers, brokerage portfolio values, brokerage portfolio holdings and, in some cases, stock trading activity for a single trading day.
Millions of people affected
Now, they are seeking damages, as well as other penalties for service providers, arguing that the company “failed to exercise reasonable care in securing and protecting consumer information.” Furthermore, they claim that the company did not notify customers on time, shared very little information about what happened, and did not provide credit and identity monitoring services.
Block publicly disclosed the incident about five months after it occurred – in early April 2022. At the time, it said that 8.2 million current and former customers had been affected and that it had reached out to notify them of the incident.
The lawsuit doesn’t detail exactly how the spam charges emerged, or how they relate to the December data breach. according to recordWhen Block first announced the data breach, he said the former employee had not stolen usernames, passwords, or other sensitive personal information.
We’ve reached out to Block for comment and will update the article if we hear back from the company.
Via: log (Opens in a new tab)