Infinity Insurance Company and parent Kemper Corporation have been named in a proposed class action over a reported late-December 2020 data breach.
According to the 41-page case, the automobile insurance companies in mid-March 2021 began to send notice of a data breach that they said occurred on December 26, 2020. Per the suit, exposed in the incident were customers’ and employees’ names, addresses, Social Security numbers, driver’s license numbers, medical leave details and workers’ compensation claim data.
The lawsuit out of Illinois alleges the breach occurred as a result of the defendants’ “negligent and/or careless acts and omissions” and failure to protect customers’ personally identifiable information (PII). The case contends that the insurers’ failure to implement adequate data security measures has subjected those affected by the breach to injuries ranging from lost time to an increased risk of identity theft and fraud.
“Plaintiffs and members of the Classes now face years of constant surveillance of their financial and personal records, monitoring, and loss of rights,” the complaint states. “The Classes are incurring and will continue to incur such damages in addition to any fraudulent use of their PII.”
Despite Infinity’s representations that it would protect customers’ privacy, the company, the lawsuit says, began to notify customers last month that its security team had “detected indications of a potential security incident on December 26, 2020,” and “identified brief, unauthorized access to files on certain company servers in [its] network on two days in December 2020.”
The defendants, the case claims, “knew, or reasonably should have known” of the importance of protecting customers’ and employees’ information in addition to the “foreseeable consequences” of a data breach, including the “significant costs” that would be incurred by those affected. Nevertheless, Kemper and Infinity, the suit says, have engaged in “negligent, knowing and willful, and/or wanton and reckless” conduct with respect to proposed class members’ privacy rights.
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