NCB Management Services Failed to Protect Consumers’ Info from Hackers, Class Action Says [UPDATE]

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A proposed class action lawsuit claims negligent cybersecurity on the part of NCB Management Services resulted in a “foreseeable” data breach purportedly detected by the company in February 2023.

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The 44-page lawsuit says that the accounts receivable management company discovered on February 4 that an unauthorized third party accessed its computer systems on the first of the month and stole data connected to clients’ Bank of America credit cards. The suit relays that the breach compromised personally identifiable information that includes, but is not limited to, names, home addresses, dates of birth, employment details, salaries, driver’s license numbers and Social Security numbers.

The exposed bank details also include, without limitation, consumers’ account numbers, credit card numbers, routing numbers, account balances and account statuses, the case adds.

The complaint alleges that the private information stored on the defendant’s network was unencrypted and accessible without a password or multi-factor authentication. Hackers “exploited this obvious vulnerability” and have purportedly listed the data for sale on the dark web, the filing says.

In addition, the lawsuit claims NCB failed to provide adequate notice to data breach victims, as notices were not sent to impacted consumers until late March.

In light of the frequency of cyberattacks in recent years, NCB should have understood the threat and taken steps to properly protect the personal information that clients entrusted to it, the suit charges. The company could have prevented the breach by implementing reasonable cybersecurity measures or simply destroying the data—particularly that of consumers with whom it had no further dealings, the case argues.

The plaintiff, a Florida resident, received notice on March 24 of this year that his private information had been compromised in the cyberattack, the complaint says. The man, like other victims, must now cope with a substantially increased risk of identity theft, fraud and other illegal schemes as a result of NCB’s conduct, the filing contends.

The lawsuit looks to represent anyone whose personal information was compromised in the data breach about which NCB Management Services sent out notices on March 24, 2023.

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