In an age of the internet and online banking, security breaches and data leakage have reached an all-time high. Recently, Cash App closed a million-dollar litigation with plaintiffs over a security breach. The class action lawsuit is an example of how plaintiffs who share a similar grievance against an entity can come together and pool their resources in order to receive compensation over data breaches of sensitive information that companies have a responsibility to protect.
Companies have a responsibility towards protecting data, or face a class action lawsuit
When it comes to protecting sensitive information, companies must ensure that this information if not affected by cybercrime. With the growth in online banking in particular, financial entities have needed to take extra precautions to protect the information of their clients from being sold on the dark web, not only risking financial theft but also placing their clients at risk of identity theft.
“The data we’re releasing today shows that scammers’ tactics are constantly evolving,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is monitoring those trends closely and working hard to protect the American people from fraud.”
With the overall increase in cybercrime, it is more critical than ever that companies take extreme precautions to protect consumer and client information. Between 2001 and 2021, cybercrime resulted in an estimated loss of a total of $26 billion, with this figure most likely being higher.
Cash App pays out this group in a litigation settlement
Cash App has recently agreed to settle a $15 million class action lawsuit with plaintiffs over a security breach in 2022. The breach occurred when an unauthorized individual gained access to Cash App’s clients’ account data. Plaintiffs argue that Cash App failed to secure their data. Cash App is a mobile payment and banking service that allows individuals to send and receive money.
The Cash App Security Settlement has meant that certain plaintiffs are eligible to receive up to $2,500 in compensation over the security breach. Plaintiffs had until November 18, 2024, to submit a claim to receive a part of the settlement. To be eligible to claim, you had to have met the following criteria:
- You had to be a user of Cash App Investing and/or Cash App
- Your account had to be accessed without your permission
- Your account experienced fraudulent withdrawals or transfers between August 23, 2018, and August 20, 2024.
A date has yet to be announced for when payments will be released to claimants, however, it is expected that the payments will be made before the end of 2025. In addition to the payment, claimants can also receive reimbursement for up to three hours of lost time at a rate of $25 per hour.
Data breaches continue to be on the rise
Data breaches continue to be on the rise for companies. Tyler Technologies, Inc., recently agreed to settle a lawsuit where plaintiffs can receive up to $3,500 in compensation. DNA-tracking company 23andMe also recently experienced a data breach where seven million DNA-ancestry accounts were compromised. Plaintiffs were eligible to receive up to $500 for undocumented expenses and up to $1,500 for documented expenses.
Not only do companies have an obligation to protect your sensitive information and to be held accountable if such information is violated, but it is also important to remember that, as a user, you must also take steps to protect your sensitive data and information. When it comes to online banking, never provide your account details to anyone online. Scammers often try to take advantage of individuals through phishing activities. Never input your card details through a suspicious email or text, and make sure you do online shopping through secure sites that are reliable and trustworthy.
