Nations Direct Mortgage Hit with Class Action Over Data Breach Announced in February 2024

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A proposed class action claims Nations Direct Mortgage, LLC failed to protect customers’ and employees’ personal information from a data breach discovered around December 30, 2023.

Did you receive a data breach letter from Nations Direct Mortgage? Let us know here.

The 47-page data breach lawsuit says that consumers’ full names, addresses, Social Security numbers and unique Nations Direct loan numbers were compromised after an unauthorized actor hacked the Nevada-based mortgage lender’s computer systems.

According to the filing, the cyberattack was a “foreseeable” incident that Nations Direct could have reasonably prevented by complying with industry-standard cybersecurity practices and properly monitoring its network for signs of intrusion.

“It is well known that [personally identifiable information], including Social Security numbers in particular, is a valuable commodity and a frequent, intentional target of cyber criminals,” the suit says. “Organizations that collect such information, including Nations Direct, are well-aware of the risk of being targeted by cybercriminals.”

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The case claims that the defendant’s failure to properly secure mortgagors’ and employees’ data has exposed victims to a lifetime risk of identity theft and fraud.

The plaintiff, a former Nations Direct employee who was impacted by the breach, has been notified that her date of birth, passwords and Social Security number have since been posted on the dark web, the complaint shares. Per the case, the plaintiff also had her social media accounts hacked and has received an “excessive” number of spam calls and emails as a result of the cyberattack.

Although Nations Direct allegedly learned of the breach in December 2023, it waited almost two months to send notice of the incident to affected individuals, the filing relays.

The complaint contends that the defendant’s notice letter, which it sent around February 28, 2024, provides a “grossly inadequate” offer of two years of complimentary identity monitoring services. Like other victims, the plaintiff must closely monitor her financial accounts and pay out of pocket for protective measures “now and for years into the future,” the lawsuit says.

The lawsuit looks to represent anyone whose private information was compromised as a result of the data breach discovered by Nations Direct in December 2023 and for which it provided notice in or about February 2024.

Did you receive a data breach letter from Nations Direct Mortgage? Let us know here.