Class Action Filed Over SNAP 2022 Data Breach

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Snap Finance LLC and Snap RTO LLC face a proposed class action over their alleged failure to prevent a data breach that exposed personal information belonging to hundreds of thousands of consumers between June 23 and September 8 of last year.

The 37-page lawsuit claims hackers accessed consumers’ unencrypted personal data stored on Snap’s network for several months in 2022 because the company failed to implement and maintain reasonable cybersecurity procedures. According to the suit, the cyberattack has exposed the names, Social Security numbers, driver’s license numbers, state identification numbers and financial account numbers of clients who have purchased Snap’s financing products.

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Per the suit, Snap was “a prime target” for hackers due to the significant amount of sensitive personal information it negligently stored in its computer systems. The filing alleges that despite having the resources to invest in adequate data security measures, Snap failed to adopt reasonable procedures for preventing and responding to data breaches, as recommended by the United States Government and the Federal Trade Commission.

The suit further claims that Snap’s negligence is compounded by repeated warnings from both public and private institutions to safeguard personal information in the face of a dramatic increase in highly publicized data breaches in recent years. 

Moreover, even though the cyberattack concluded in early September, Snap waited until December 1 to notify impacted individuals, the suit states.

The complaint relays that the compromised data will likely be bought and sold on the dark web, where phishers, hackers, identity thieves and cybercriminals can then use the stolen information to commit identity theft or financial fraud. Victims may also need to pay out-of-pocket expenses related to credit monitoring and identity theft prevention, the case adds.

The lawsuit looks to cover anyone in the United States whose personal information was compromised in or as a result of Snap’s data breach on or around June 23, 2022 through September 8, 2022, which was announced on or around December 1, 2022.

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