Blackhawk Engagement Solutions Facing Lawsuit Over 2023 MyPrepaidCenter.com Data Breach

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The operator of MyPrepaidCenter.com faces a proposed class action lawsuit over a “foreseeable” August 2023 data breach, at least the second such cyberattack experienced by the company within the last year. 

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The 37-page complaint says defendant Blackhawk Engagement Solutions, who runs MyPrepaidCenter.com on behalf of Pathward N.A. to activate and manage certain prepaid cards, was alerted to unusual activity on the website on August 12, 2023. In particular, Blackhawk learned that unauthorized parties used a “malicious exploit” on the site to access certain customer payment card information between June 16 and August 19 of this year, the suit states. 

The case emphasizes that this is the second data breach experienced by Blackhawk and MyPrepaidCenter.com in the last year. The lawsuit blames the 2023 data breach on “lax data security practices” on the part of Blackhawk. 

Information compromised in the 2023 MyPrepaidCenter.com data breach included customer names and payment card numbers, expiration dates and CVV codes, the lawsuit says. These details must be provided to Blackhawk in order to activate or access a prepaid card on MyPrepaidCenter.com, the suit states.

“The Private Information exfiltrated in the Data Breach was unencrypted and captured directly from MyPrepaidCenter.com,” the case relays, noting that although Blackhawk “blocked” impacted Pathward prepaid cards, it was mum about what happened to the stolen information. 

As the lawsuit tells it, based on the details in Blackhawk’s MyPrepaidCenter.com data breach notice letter, the information compromised in the hack amounts to “a gold mine for data thieves,” who effectively had a one-month head start given how long the company waited before notifying victims around September 27. 

Per the suit, data breach victims will be forced to incur out-of-pocket costs to monitor their identities and accounts since Blackhawk failed to offer any amount of credit monitoring services in the wake of the cyberattack. 

The lawsuit looks to cover anyone in the United States whose private information was subject to the data breach announced by Blackhawk Engagement Services on or around September 27, 2023, including those identified by the company as among the people impacted by the breach, and anyone who received notice of the incident. 

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