Fidelity Investments Failed to Protect Customer Data from Hackers, Class Action Says

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Fidelity Investments faces a proposed class action lawsuit over a May 2023 cyberattack that affected approximately 371,000 customers and fund participants.

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The 46-page lawsuit relays that the Boston-based financial services company was impacted by a data breach that targeted MOVEit, a widely used file transfer platform owned by third-party vendor Progress Software Corporation (PSC), with whom Fidelity partners for information technology services.

As a result, the personal information of Fidelity Investments customers was compromised when cybercriminals gained access to PSC’s MOVEit software between May 29 and May 30 of this year, the suit describes. According to the case, the data breach exposed consumers’ names, Social Security numbers, addresses, dates of birth and other private information.

Related Reading: 2023 MOVEit Data Breach Lawsuits

The complaint argues that Fidelity Investments failed to take reasonable steps to ensure the personal information in its care was safeguarded, including by properly monitoring its technology partners. By neglecting to do so, the financial services company made the stored data “easy prey for cybercriminals,” the filing contends.

In addition, the lawsuit alleges that the defendant “unreasonably delayed” notifying victims, who did not begin receiving notices until July 2023, weeks after the incident purportedly occurred. What’s more, the notice letter “deliberately underplayed” the seriousness of the cyberattack and “obfuscated the nature of the breach,” the suit charges.

The case further contests that Fidelity Investments’ offer of two years of credit monitoring services fails to adequately compensate victims, who now face a lifelong risk of fraud and identity theft as a result of the defendant’s alleged negligence.

The lawsuit looks to represent anyone in the United States whose private information was impacted by the Fidelity Investments data breach, including those who received a notice letter.

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