Data breach prompts consolidated class-action against FinWise, American First Finance

Utah-based fintech and banking services provider FinWise Bank and U.S. payment solutions firm American First Finance have been sued over their alleged negligence in an insider data breach in May 2024 that impacted 689,000 individuals, reports Banking Dive.

FinWise, which began breach notifications in late July after discovering the incident only weeks earlier, had failed to adequately protect customer information from compromise, according to the consolidated class-action lawsuit, which also accused FinWise and AFF of breach of contract and unjust enrichment.

While FinWise has already provided complimentary credit monitoring and identity protection services for a year, plaintiffs have been pushing for lifetime protections, as well as over $5 million in relief. FinWise has committed to fighting the lawsuit.

Such delayed breach notification from FinWise comes after Texas-based TDECU disclosed having been impacted by the widespread MOVEit hack last August, or more than a year after the intrusion occurred.