Block, a payment giant, is being sued for negligence by former customers due to a data breach that occurred in 2021. During the breach, Block’s subsidiary Cash App was targeted by a former employee who stole the personal information of roughly eight million customers. The lawyers for two of these eight million victims who had their information stolen filed for a class action lawsuit in California earlier this week. The lawsuit claims that the company failed to inform its customers of the security risk within a reasonable period. According to the lawsuit, there was a four-month delay between when the breach occurred and when Block reported it to the Securities and Exchange Commission (SEC).
Furthermore, the pair of plaintiffs were not offered any credit monitoring services. In an incident of this nature, it is typically common practice to offer those impacted by the breach credit monitoring services to ensure that a threat actor who has gotten access to the information is not performing identity theft or that it is caught early. One of the plaintiffs claimed to have suffered from $400 in unauthorized transactions on their account following the data breach. Both of the plaintiffs stated that they spent a significant amount of time dealing with the consequences of the incident.
