Guardian Analytics Inc. and Webster Bank N.A. have agreed to pay over $1.4 million to resolve claims stemming from a data breach in 2022.
The Guardian Analytics and Webster Bank data breach compromised the personal information of approximately 192,000 individuals, leading to allegations of inadequate protection of sensitive customer data.
The settlement, which received final approval in federal court, addresses grievances brought forward in a consolidated class action lawsuit.
Plaintiffs contended that both Guardian Analytics, a provider of data analytics services to financial institutions, and Webster Bank, failed to implement sufficient measures to safeguard sensitive customer information, including names, Social Security numbers, and financial account details.
Going Back to Guardian Analytics and Webster Bank Data Breach
During the Guardian Analytics data breach, unauthorized individuals gained access to Guardian’s network systems between November 27, 2022, and January 26, 2023, obtaining the personally identifiable information (PII) of plaintiffs and class members. This data breach left affected individuals vulnerable to identity theft and other forms of fraud.
The plaintiffs alleged that the defendants, Guardian Analytics and Webster Bank, breached their duty to implement and maintain adequate security measures, thereby allowing the breach to occur.
As a result, plaintiffs and class members suffered various damages, including a significant risk of identity theft, loss of confidentiality of their PII, and financial losses due to inadequate data security measures.
The $1.4 Million Data Breach Lawsuit
The Guardian Analytics and Webster Bank data breach settlement agreement includes provisions to reimburse affected individuals for monetary losses, covering up to $5,000 for direct financial losses and up to $250 for ordinary losses. Additionally, the agreement compensates for four hours of lost time incurred by plaintiffs dealing with the aftermath of the breach.
Individual plaintiffs, including Mark S. Holden, Richard Andisio, Edward Marshall, Ann Marie Marshall, Arthur Christiani, Johnielle Dwyer, Pawel Krzykowski, and Mariola Krzynowek, represented the class action lawsuit.
Each plaintiff cited damages suffered as a result of the breach, ranging from financial losses to significant time spent rectifying the situation and monitoring accounts for fraudulent activity.
The settlement serves as a reminder of the importance of robust data security measures in an era where cyber threats are increasingly prevalent.
Both Guardian Analytics and Webster Bank have emphasized their commitment to enhancing security protocols to prevent similar incidents in the future.
The legal proceedings shed light on the grave consequences of data breaches, including prolonged periods of identity theft resolution and financial instability for affected individuals.
As technology continues to evolve, businesses must prioritize cybersecurity to protect customer data and maintain trust in an increasingly digital world.