First American Financial reveals its encounter with a security data breach. The company disclosed that the breach has affected more than 885 million documents. Following this news, the claimants filed a class action lawsuit against the insurance company.
Compromised Data
Cybersecurity expert Brian Krebs alerted authorities and the insurer after a data leak. On his website, Krebs stated the type of information made public. He also notes the documents leaked online dates to 2003.
The data breach exposed digitized records, including personal information of customers. This also revealed consumers’ Social Security numbers, bank account numbers, wire transaction receipts, and tax records. Drivers license photographs were also available for download, as well as bank statements and mortgage details.
Class Action Lawsuit
Bloomberg reports that a citizen of Pennsylvania named David Grit sued the insurer. Gritz, whose business includes flipping houses, worked with the insurer for 11 of his housing transactions, notes Forbes.
Complainant filed the lawsuit due to First American Financial allowing “anyone to access sensitive files of millions of customers.” Gritz is fighting on behalf of consumers whose data was compromised by the privacy data breach. According to the complainant, the insurance company failed to provide basic security defences.
Forbes reports that Gibbs Law Group LLP will be fighting on behalf of Gritz. It is the first company to file a class action lawsuit against First American Financial. Complainant filed the case on Monday, May 27, 2019.
According to a report by Forbes, the complainant and its consumers seek 5 million dollars worth of damages.
Lasting Effects
Following news of security leaks, the insurance company encountered its lowest market price yet. From 62 dollars, Compass Point lowered the price target to 55 dollars.
Bloomberg notes that the company will most likely incur more costs due to concerns arising from the alleged leak. Apart from this, the company also needs to spend millions of dollars on updating its technology and security.
Violation of Company Promise and Policy
First American Financial claims that it seeks to secure client information to the best of its ability. It also claims that non-public personal information will remain confidential.
The insurer states that “there is no indication that any large-scale unauthorized access to sensitive customer information occurred.” However, in a report from Housing Wire, it seeks to continue investigating the incident. Part of its initiative is shutting down external access to the application.
