KeyBank, Overby-Seawell Data Breach Sparks Class Action Lawsuit

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KeyBank, N.A. and Overby-Seawell Co. have been named in a proposed class action lawsuit over a July 2022 data breach during which mortgage borrowers’ personally identifiable information was reportedly compromised.

The 36-page lawsuit alleges that KeyBank, a mortgage lender and servicer, and Overby-Seawell (OSC), a vendor who verifies KeyBank residential mortgage clients’ maintenance of property insurance, failed to implement adequate data security prior to the incident. As a result, the suit says, unauthorized actors were able to gain access to OSC’s network on July 5 of this year and acquire consumers’ sensitive information.

According to the case, the data compromised in the breach included consumers’ names; mortgage property address and details; mortgage account numbers and information; phone numbers; partial Social Security numbers; and home insurance policy numbers and information.

The lawsuit stresses that this type of information can be used on its own and in combination with other personal details to “perpetuate crimes” against consumers and cause significant damage to their money, property, credit and reputation.

Per the case, the defendants sent notice of the data breach to affected individuals around August 26, 2022. The suit notes that because OSC’s investigation into the incident is ongoing, it’s possible that additional personally identifiable information was compromised.

According to the suit, it was only after the data breach that the defendants took “basic steps recognized in the industry” to protect consumers’ sensitive information.

“Had Defendants properly maintained their systems and adequately protected them, they could have prevented the Data Breach,” the complaint contends.

The lawsuit looks to cover anyone in the U.S. whose personally identifiable information was accessed in the 2022 OSC data breach.

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