DialAmerica Marketing Facing Class Action Over 2021 Data Breach

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A proposed class action alleges DialAmerica Marketing’s failure to properly safeguard current and former employees’ personal information is to blame for a months-long data breach in 2021.

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According to the 35-page case, the Mahwah, New Jersey-based telemarketing and call center outsourcing service provider failed to implement industry-standard cybersecurity protocols and practices despite representing to employees that their personal information would be guarded against unauthorized access.

The suit claims that an unauthorized actor nevertheless gained “unfettered and undetected access” to employees’ names, addresses and Social Security and employee ID numbers between February 2 and July 9, 2021.

Per the case, data breach victims now face a “significant risk” of identity theft and fraud as a result of DialAmerica’s alleged “negligence and/or recklessness” in storing their information.

The suit relays that DialAmerica stated in its data breach notice that it first identified “unusual activity” on its network in early July 2021. According to the case, the company’s investigation into the incident did not conclude until February 2022, and notice of the breach was not sent to victims until at least early April, the suit says.

“Thus, the victims of this Data Breach, including Plaintiff and Class Members, were not sent notice of this Data Breach until approximately nine months after DialAmerica first knew about this Data Breach,” the complaint says.

The lawsuit claims that DialAmerica knew or should have known of the risks of cyberattacks given the telemarketing industry is “particularly susceptible” to them.

Moreover, the case argues that the defendant’s offer of 24 months of credit and identity monitoring services is “wholly inadequate” to compensate those affected by the incident, especially since they now face “years of constant surveillance” of their personal and financial accounts.

“The ramifications of Defendant’s failure to keep secure the [personally identifiable information] of Plaintiff and Class Members are long lasting and severe,” the lawsuit reads. “Once [personally identifiable information] is stolen, particularly Social Security numbers, fraudulent use of that information and damage to victims may continue for years.”

The lawsuit looks to cover all individuals whom DialAmerica Marketing identified as being among those impacted by the data breach, including people who were sent notice of the incident.

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