August 2023 Cyberattack Triggers Class Action Against Premium Mortgage Corporation

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A proposed class action accuses Premium Mortgage Corporation of failing to protect the personal data of roughly 10,000 individuals during an August 2023 cyberattack.

Did you receive a data breach letter from Premium Mortgage Corporation? Let us know here.

The 56-page lawsuit shares that after the New York-based mortgage lender discovered unusual activity on parts of its network last year, a subsequent investigation determined that an unauthorized third party had accessed certain business email accounts between August 24 and August 31, 2023.

As a result, the names and Social Security numbers of current and former customers were compromised, the data breach suit says.

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Despite the mortgage lender’s duty to protect sensitive customer information in its care, the company stored the data unencrypted and “in a reckless manner” in its computer system, the case alleges. Per the complaint, the defendant could have prevented the cyberattack entirely had it followed proper encryption protocols.

What’s more, the Premium Mortgage Corporation notice letter sent to victims lacked critical details about the incident, the filing contends. As the lawsuit tells it, the notice failed to explain how cybercriminals gained access to the company’s network and what steps are being taken to safeguard stored data in the future.

“Without these details, [the plaintiff’s] and Class Members’ ability to mitigate the harms resulting from the Data Breach is severely diminished,” the suit adds.

The case claims that victims like the plaintiff—a Premium Mortgage Corporation customer residing in New York—now face a substantially increased risk of identity theft, fraud and other illegal schemes as a result of the company’s negligence.

The lawsuit looks to represent anyone in the United States whose personal information was accessed and/or acquired by an unauthorized third party as a result of the data breach reported by Premium Mortgage Corporation in January 2024.

Did you receive a data breach letter from Premium Mortgage Corporation? Let us know here.