Block, the fintech company with ties to former Twitter CEO Jack Dorsey, is facing a class action lawsuit due to inadequate security measures that led to a data breach impacting 8.2 million customers. Such personal information as full names and brokerage account numbers were put at risk by this breach, leading the suit to demand compensation for those affected as well as better corporate security moving forward.
Jack Dorsey has had a difficult week as news of Twitter’s dysfunctional deal, a whistleblower leveling allegations against him and the U.S. Securities and Exchange Commission (SEC) bringing a lawsuit against his other firm Block for neglecting to protect consumers’ confidential information came to light.
SEC Launches Investigation Into Jack Dorsey’s Block for Data Breach Violations
The SEC initiated their investigation after it was revealed that an ex-employee from Block still had access to records containing customers’ real names and brokerage account numbers without authorisation. According to Block’s April filing, the employee gained access to this data despite no longer being employed with them.
The SEC is further assessing if Jack Dorsey had any cognizance or prior understanding of the worker’s latest access before the breach occurred. Elon Musk’s current tweets regarding the possibility of Twitter going private has called into question Jack Dorsey’s handling of the scandal.
It is uncertain how the situation will unfold, however it is essential that organizations guarantee that past employees do not have access to sensitive data once they have left the company.
The Plaintiff, Block, is alleging that the Defendant failed to take necessary measures to protect the Plaintiffs’ and Class Members’ private information, leading to a Data Breach. It has been established that a former employee of the Defendant had gained access to reports as part of their job duties and subsequently downloaded them after their employment was terminated.
This negligence on part of the Defendant allowed a Data Breach to occur, although the root cause remains unknown. Whatever the reason, it is clear that insufficient security was in place which allowed the breach to happen.
The Plaintiff seeks damages for losses incurred due to the Data Breach.
A class action lawsuit has been filed against Jack Dorsey, CEO of Twitter, alleging that he was responsible for a data breach which jeopardized user information and led to thefts from the Cash App accounts of victims. The plaintiffs claim that they experienced fraudulent activity on their accounts in the wake of the security incident. Silicon Valley figures such as venture capitalist Marc Andreessen and David Sacks, former COO of PayPal, have been issued subpoenas by Twitter as part of the investigation.
The trail on the allegation
Block was sued on Tuesday concerning the December 2021 cybersecurity incident and the lawsuit implicates victims of the breach as facing enhanced risk of identity fraud. The trial will focus on whether or not Jack Dorsey is liable for the breach and any potential compensatory damages due to the plaintiffs.
Class Action Lawsuit Filed Against Cash App for Inadequate Security Measures
A class action lawsuit has been filed against Cash App due to their inadequate computer security protocols, which resulted in a massive data breach of 8.2 million users’ personal information in April 2022. The breach allowed an ex-employee access to confidential user details such as full name, brokerage account number, portfolio value and stock trading activity, without authorisation. Since the incident, Forbes has reported multiple fraudulent activities on Cash App, although no evidence directly connects these events to the breach. In response, the lawsuit claims that Cash App neglected to put in place appropriate security measures to protect its users from potential financial losses.
The claims of Plaintiffs
Northern District of California Lawsuit Seeks Damages for Negligence-Related Losses
The class action lawsuit filed in the Northern District of California alleges that Block was negligent in its duty to secure and protect consumers’ information. The plaintiffs claim that Block’s failure to take reasonable care has compelled them to expend time and resources to address the breach. It is further argued that customers have a property interest in their private information, which Block violated through their negligence.
The lawsuit seeks damages for those impacted by Block’s alleged negligence, including losses from data theft, identity theft, and other related issues. Plaintiffs may be entitled to compensation for costs associated with these harms.
Also Read: Finastra, Ransomware & Investigations- The Saga Continues!
Lawsuit Asserts: Twitter Failed to Warn of Data Breach, Protect Consumer Info.
Two individuals have taken legal action against Twitter following the recent data breach, leaving the private information of thousands of users exposed. The lawsuit alleges that Twitter was to blame for not providing adequate and prompt notification of the incident nor suitable measures to protect their customers’ information from identity theft or financial losses. The plaintiffs contend they have sustained unauthorized transactions due to the breach, for which they are yet to receive compensation. Additionally, the case refers to a former security chief’s whistleblower complaint, which raised alarm bells over deficiencies in user privacy and inadequate security. This case serves as an important reminder of the need for data protection and privacy laws, as well as to take extra precautions to shield yourself from potential identity theft.
Class-Action Allegations Against Block on Breach and Data Security
The Plaintiffs in a class-action lawsuit bring forward allegations against Block, asserting that it failed to disclose information regarding a data breach they suffered. This includes details on how the unauthorized employee was able to gain access and whether consumer data was properly encrypted. Claiming damages, the victims have requested at least three years of credit monitoring services, along with a ruling which requires Block to enhance its data security policies. The legal action seeks to ensure that suitable precautions are taken going forward with regards to gathering, retention and safeguarding of data. Specifically, they demand explicit disclosure of the incident and confirmation that complete encryption has been implemented for all consumer data.
Secure Best Practices: Safeguard User Accounts
Recent reports have spotlighted the alarming issue of security hackers attempting to gain illegal access to user accounts like Cash App. It has been suggested that the hackers are achieving this by finding sensitive data from fraudulent websites selling account details. This could mean usernames, passwords and other personal information being exposed. Businesses are advised to take swift and decisive action in order to safeguard the privacy of their users; for instance, having strong password protocols in place, providing regular user awareness and training, as well as frequently assessing their networks and systems for any suspicious activity. It is of paramount importance that companies implement secure best practices to protect confidential information and sensitive data.
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