Mortgage Contracting Services to Blame for December 2023 Cyberattack, Class Action Alleges

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A proposed class action claims negligent cybersecurity is to blame for a December 2023 data breach that compromised the personal information of current and former Mortgage Contracting Services (MCS) employees and customers.

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According to the 33-page amended complaint, an unauthorized third party gained access to certain MCS computer systems between December 9 and December 13, 2023. Per the suit, the cyberattack exposed the names and Social Security numbers of at least 1,143 individuals who had entrusted their private information to the Texas-based property services company.

Despite its duty to safeguard the personal data in its care, MCS failed to implement proper, up-to-date cybersecurity protocols to prevent unauthorized intrusion into its computer systems, the case alleges.

In addition, the company waited until late February 2024—months after the data breach purportedly occurred—to begin notifying victims about the incident, the complaint shares.

As the filing tells it, MCS’s delayed notification meant that impacted individuals were “vulnerable to identity theft without any warnings to monitor their financial accounts or credit reports to prevent unauthorized use of their [personally identifiable information].”

What’s more, MCS’s notice letter intentionally “obfuscated the nature of the breach” and the threat it posed by failing to explain how many individuals were affected, how the incident occurred and why the company had waited so long to notify victims, the suit contends.

The case charges that impacted individuals now face a lifelong risk of identity theft and fraud at the hands of data thieves, thanks to MCS’s alleged negligence.

The lawsuit looks to represent anyone in the United States whose personal information was accessed without authorization in the MCS data breach, including those who received notice of the incident.

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