National Public Data Faces Lawsuits Following Data Breach

Background check company, National Public Data (NPD), is facing a growing number of lawsuits after confirming a major data breach that exposed personal records, including Social Security numbers, of American citizens.

Details of the Data Breach

The data breach came to light in August when a class-action lawsuit was filed against the Florida-based company. The lawsuit alleged that approximately 2.9 billion records, including Social Security numbers, were leaked online and offered for sale on the dark web for $3.5 million. NPD later confirmed the data breach but stated that only 1.3 million records were leaked.

Increasing Legal Actions

Since the initial lawsuit, several more have been filed against NPD, with over a dozen suits lodged against the company or its parent company, Jerico Pictures, since early August. The lawsuits accuse NPD of negligence and breach of fiduciary duty. The company has yet to respond to these allegations in court.

NPD's Response to the Breach

NPD attributed the data breach to a "data security incident" caused by an attempted hack by a "third-party bad actor". The company confirmed attempted hacks of its systems in December 2023, with potential data leaks in April and summer 2024. In response, NPD has implemented additional security measures to prevent future breaches and protect its systems.

Advice for Potentially Affected Individuals

NPD advises individuals potentially affected by the breach to monitor their financial accounts closely and report any unauthorized activity to their financial institution. The company also suggests contacting the three largest credit reporting agencies—TransUnion, Equifax, and Experian—to obtain a free credit report or place a fraud alert on any potential lines of credit opened without authorization.

Investigation into the Data Breach

The data breach has prompted a House committee to launch an investigation into NPD. Lawmakers have requested a briefing to confirm the details of the attack and assess its potential impacts on the U.S. government, businesses, and the American public.

Checking for Compromised Data

Two websites have been established to allow individuals to check if their data, including Social Security numbers, have been compromised. One is operated by cybersecurity testing service, Pentester, and the other by Atlas Privacy, a cybersecurity company.

Bottom Line

The data breach at National Public Data is a stark reminder of the importance of robust cybersecurity measures, particularly for companies handling sensitive personal information. The incident not only has legal implications for the company but also potentially lifelong consequences for the individuals whose data was compromised. What are your thoughts on this matter? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, delivered every day at 6pm.