MoneyGram Data Breach Lawsuit Filed After Customer Info Stolen by Hackers

New to ClassAction.org? Read our Newswire Disclaimer

MoneyGram Payment Systems faces a proposed class action lawsuit in the wake of a reported 2024 data breach in which a trove of sensitive customer information was stolen by cybercriminals.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s free weekly newsletter.

The 32-page MoneyGram data breach lawsuit says that the infiltration occurred between September 20 and September 22, 2024, though MoneyGram allegedly failed to detect the data breach until September 27. The filing states that although MoneyGram has not revealed the full scope of the data breach, it likely impacted thousands of customers given that the defendant is one of the largest money transfer services worldwide.

Related Reading: MoneyGram Data Breach Lawsuits – October 2024

The MoneyGram data breach appears to have occurred by way of a “social engineering attack” on the company’s IT helpdesk, whereby the perpetrators impersonated an employee to gain access to that person’s account, the lawsuit relays. The cybercriminals then used the access to remotely connect to MoneyGram’s information systems and target its Windows Active Directory systems directly, the suit states.

Information allegedly compromised in the MoneyGram cyberattack includes names, Social Security numbers, government IDs, transaction details, email and postal addresses, phone numbers, bank account specifics, MoneyGram Plus Rewards data and some criminal investigation information for a limited number of customers.

According to the suit, MoneyGram’s failure to catch the malicious activity until after it had concluded is evidence that the company “lacks the appropriate logging, monitoring, and alerting systems necessary to enable it to identify such attacks.”

“Indeed, Defendant did not initially recognize the cyberattack for what it was,” the case contends. “Rather, it believed it merely suffered a ‘network outage’ rather than a data breach.”

The case calls the 2024 MoneyGram data breach an “[i]mminently [f]oreseeable” risk to the company.

The MoneyGram data breach lawsuit looks to cover all United States residents whose personally identifiable information was compromised in the MoneyGram data breach and to whom the company sent a notification that they were affected by the incident.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.