A recent data breach settlement has placed the focus on LoanCare. A data breach occurs when unauthorized people gain access to confidential and sensitive information. The information that is referred to here can be anything, such as bank account details, social security numbers, and other such of corporate data. Corporate data, in turn, relates to customer records as well as your intellectual property. In almost all of the situations, the consequences of these data breaches are severe and can flow through into things such as financial fraud, identity theft, and other illegal activities.
Understanding the fundamental dynamics of a data breach
A data breach is not necessarily only known by its definition, but can also be defined according to the various types of breaches that prevail. Understanding them may also help one to be more aware of their persistent occurrence:
- Password Guessing
Yes, this basic strategy is still used. An attacker will work to try different combinations of passwords to gain access to your documents.
- Phishing
These deceptive little emails tend to trick the user into revealing some of their personal information. That can be things such as credit card details, login credentials, etc.
- Ransomware
This malicious software aims to block access or encrypt files on a computer. Victims of these attacks are not able to access their computer systems. A displayed message will demand a monetary payment, after which the attacker will then restore the system.
The claims that were made against LoanCare
The class action lawsuit that LoanCare was embroiled in led to a settlement agreement of $5,9 million. Arguments in this matter note that the company failed to prevent a 2023 data breach that compromised some sensitive consumer information. Notices were sent out to individuals who were affected by this data breach. In this notice, the individuals were informed of the cybersecurity attack that took place on 19 November 2023.
The plaintiffs in this matter argue that this incident could have been prevented if reasonable cybersecurity measures had been implemented. Due to this breach, sensitive information of individuals was compromised. This information relates to Social Security numbers, addresses, names, and loan numbers. The company did not admit to any wrongdoing, but has agreed to the $5,9 million settlement.
Further data is available on this matter
According to the terms set forth for this settlement, affected individuals may be able to receive a flat-rate payment or be reimbursed for documented losses or expenses. The reimbursement payment is to an amount of up to $1,500. This amount is available for the ordinary losses experienced. These ordinary losses are those such as communication charges, fees, credit monitoring services, as well as other unreimbursed expenses.
Claims for the extraordinary losses can be for an amount of up to $5,000. These are for things such as identity theft and unreimbursed fraud damages. Both of the categories are required to be documented. A flat-rate payment is claimable for members who have not experienced any losses due to the data breach. It also applies to those individuals who do not want to claim reimbursable losses.
This flat rate payment amounts to $100. Payments can be decreased or increased on a pro rata basis. All class members in this class action settlement lawsuit may be eligible for three years’ worth of identity monitoring services. This is inclusive of dark web scanning, access to fraud specialists, identity theft restoration services, identity theft insurance up to a value of $1 million, as well as real-time credit monitoring. Only one year’s worth of identity monitoring under this settlement is available to those individuals who previously selected to receive the 24-month identity theft monitoring services. For more information about this settlement, you can visit Top Class Actions and learn how to file a claim.
