Legal Action Against Billion-Dollar Bank for Serious Data Breach Incident
A prominent US financial institution, Centennial Bank, is currently facing multiple class action lawsuits following a significant security breach that compromised the personal identifiable information (PII) of numerous customers.
The plaintiffs behind the lawsuits claim that the data breach incident occurred in April 2023. Shockingly, the affected customers were only informed about the theft of their PII a whole year later, as per reports from a prominent consumer lawsuit-focused news site.
– **Security Breach Date and Disclosure**
– The data breach incident, as per Centennial Bank’s official website, took place on April 6th-7th of the previous year.
– The comprehensive review of the breach was completed by the lender on March 29th.
– **Extent of Impact**
– While the exact number of affected customers remains undisclosed by the bank, a statutory data breach notification in Washington State confirms that 3,044 individuals from that state alone were impacted.
– The compromised sensitive information included full names, Social Security numbers, dates of birth, driver’s license numbers, bank account details, and health insurance information.
– **Allegations Against Centennial Bank**
– One of the lawsuits accuses Centennial Bank of failing to establish a robust security system to safeguard its customers’ data effectively.
– The lawsuit states that the bank neglected to encrypt or redact the highly sensitive information of its clients, leading to its exposure due to the institution’s negligent acts and omissions.
Impact on Services and Operations
Following the security incident in April 2023, Centennial Bank encountered substantial disruptions across its system, affecting both customers and operations.
According to local news reports, the bank experienced a widespread shutdown, resulting in customers being unable to access online banking services or utilize their cards for transactions.
– **Affected Operations**
– The bank branches faced challenges in processing cash withdrawals and deposits, leading to delays and rejections.
– Online services, including bill payments and payroll deposits, were disrupted, causing inconvenience to both customers and the bank.
– **Bank Profile**
– Centennial Bank, with assets amounting to $22 billion and 222 physical locations scattered across Arkansas, Alabama, Florida, Texas, and New York City, is a significant player in the banking sector.
Subscribe to email alerts for the latest updates and news in the crypto and financial industry.
Join us on social media platforms like Twitter, Facebook, and Telegram to stay connected.
Explore a mix of engaging content and insights on The Daily Hodl to stay informed and up-to-date with the latest trends in the cryptocurrency and blockchain space.
Image Source: Midjourney
Hot Take: Security Breaches and Financial Institutions
Financial institutions must prioritize robust security measures to protect the sensitive data of their customers and uphold trust in the digital era.
Efficient communication and prompt action following a security breach are crucial to mitigate risks and ensure transparency with affected parties.
It is imperative for banks and other financial entities to invest in advanced cybersecurity solutions and maintain strict protocols to safeguard customer data and prevent unauthorized access and breaches.
Sources:
1. [Top Class Actions](https://topclassactions.com/lawsuit-settlements/privacy/data-breach/centennial-bank-class-actions-allege-data-breach-impacted-customer-info/)
2. [Attorney General of Washington State](https://www.atg.wa.gov/data-breach-notifications)
3. [The Fox 104.9](https://thefox1049.com/news/268862-centennial-bank-reveals-data-security-incident/)
4. [Centennial Bank Official Website](https://www.my100bank.com/about-us/#:~:text=Today%20our%20bank%2Dholding%20company,and%20support%20of%20local%20charities.)
By
By
By