Sat, July 27, 2024 at 14:33

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some concerning news about a major data breach involving Evolve Bank & Trust.

  • 
• Annie

  • Oh no, that sounds serious.

  • What happened?😟

  
• 

  Kang-hoon

  • Indeed, it is.

  • More than seven million people have been affected by this hack.

  • 

  • The breach has exposed sensitive data such as names, Social Security numbers, bank account numbers, addresses, phone numbers, and email addresses.

• Annie

  • Wow, that's a lot of personal information!

  • How did this happen?

  
• ADward

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• 

  Kang-hoon

  • The breach occurred after an Evolve Bank & Trust employee clicked on a malicious link in late May.

  • This allowed a Russian-linked group known as LockBit to access the bank's system.

• Annie

  • LockBit?

  • I've heard of them.

  • They're quite notorious, right?

  
• 

  Kang-hoon

  • Yes, they are.

  • LockBit has been involved in several high-profile cyberattacks.

  • This time, their actions have also impacted several other financial firms that work with Evolve Bank & Trust, including Affirm, Wise, Bilt, Marqeta, Mercury, and EarnIn.

• Annie

  • So, customers of these firms are also at risk?😰

  
• 

  Kang-hoon

  • Correct.

  • Affirm, for instance, has 18 million customers, and they believe that the personal information of their Affirm Card users was compromised in the hack.

  • Other firms have either confirmed data theft or are still investigating the extent of the breach.

• Annie

  • This is really alarming.

  • What is Evolve Bank & Trust doing to help their customers?

  
• 

  Kang-hoon

  • The bank is advising its customers to closely monitor their accounts for any suspicious activity.

  • They are also offering two years of credit and identity monitoring services for those affected.

• Annie

  • That's a relief, at least.

  • But what about legal actions?

  
• 

  Kang-hoon

  • Multiple proposed class-action lawsuits have already been filed.

  • These lawsuits are seeking compensation for people whose private data was or may have been affected by the breach.

• Annie

  • I see.

  • This must be a huge blow to Evolve Bank & Trust.

  • How big is the bank?

  
• 

  Kang-hoon

  • Evolve Bank & Trust has $1.551 billion in total assets and operates 26 physical locations across the US.

  • This breach will undoubtedly have significant repercussions for them.

• Annie

  • Definitely.

  • Do you think this news is a bad sign for the financial market?

  
• 

  Kang-hoon

  • Yes, Annie.

  • This is undoubtedly bad news.

  • Such a large-scale data breach undermines trust in financial institutions and can lead to increased regulatory scrutiny and financial losses.

  • It is a clear negative for the market.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • This really helps me understand the gravity of the situation.😔

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • It's important to stay informed about these issues, especially when they can have such widespread impacts.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.