Alvaria, Carrington Mortgage Services Failed to Protect Customer Data from Hackers, Class Action Says

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A proposed class action lawsuit alleges that software service provider Alvaria, Inc. and business client Carrington Mortgage Services are to blame for a March 2023 data breach of the companies’ “customer environment.”

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The 43-page lawsuit says that an unauthorized third party accessed Alvaria’s network systems on or around March 9 and withdrew personal information associated with the company’s current and former customers and those of Carrington, for whom the mortgage services company provided data to Alvaria.

The suit relays that the information compromised by the Alvaria/Carrington data breach included, but is not limited to, consumers’ names, phone numbers, mailing addresses, loan numbers, current loan balances and the last four digits of Social Security numbers.

The case charges that the defendants failed to implement adequate data security practices to safeguard the sensitive information stored in their computer systems and could have prevented the ransomware attack by encrypting the data or destroying it once it was no longer needed.

According to the complaint, the companies fully understood that they had a responsibility to protect the valuable private information entrusted to them. Per the suit, Alvaria and Carrington knew all too well that consumer information was a “target of data thieves,” as only a few months earlier Alvaria had been hacked by the so-called Hive Ransomware group in a similar incident affecting nearly 5,000 customers.

The plaintiff, a Florida resident who had previously taken out a mortgage with Carrington, received from Alvaria on April 26 a notice informing him that his personal information had been compromised in the breach, the filing shares.

Per the suit, Alvaria has offered the plaintiff two years of complimentary credit monitoring, but this “fall[s] well short of what is needed” to adequately protect the man and other victims from the enduring consequences of having their data disclosed to cybercriminals.

The lawsuit looks to represent anyone in the United States whose personal information was compromised during the data breach announced by Alvaria, Inc. and Carrington Mortgage Services, LLC in April 2023.

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