July 3, 2024
In a recent development, money transfer fintech company Wise has announced that some of its customers may have been affected by a data breach at Evolve Bank & Trust.
Last week, Evolve Bank confirmed that it had fallen victim to a cyberattack by the Russia-linked LockBit ransomware gang. The hackers reportedly posted stolen customer data from the lender on the dark web, raising concerns about the security of sensitive information.
Wise, which collaborated with Evolve Bank from 2020 to 2023 to provide USD account details, has disclosed that the breached data might include names, addresses, dates of birth, contact details, Social Security Numbers (SSNs) or Employer Identification Numbers (EINs) for US customers, and other identity document numbers for non-US customers.
The company is currently investigating the extent of the data breach and has not yet received specific details about the compromised information. Wise has committed to notifying all customers who might be impacted via email as soon as more information becomes available.
In addition to Wise, Evolve Bank partners with several other fintech companies, including Affirm, EarnIn, Marqeta, Melio, and Mercury. These companies are also investigating the potential impact of the hack on their customers’ data.
Impact and Response
The breach has prompted Wise to take immediate action to safeguard its customers. The fintech firm is actively working to understand the scope of the breach and mitigate any potential harm. Customers are advised to be vigilant about potential phishing attempts and to monitor their accounts for any suspicious activity.
Wise’s swift response highlights the growing need for robust cybersecurity measures in the financial technology sector. As cyberattacks become more sophisticated, companies must continually enhance their security protocols to protect sensitive customer information.
Industry-Wide Concern
The Evolve Bank hack underscores a broader issue within the fintech and banking industries. With the increasing reliance on digital platforms, the risk of cyberattacks has escalated. The incident serves as a stark reminder of the vulnerabilities that exist and the critical importance of cybersecurity.
Affirm, EarnIn, Marqeta, Melio, and Mercury are among the fintech firms also assessing the potential fallout from the breach. Their investigations will determine whether their customers’ data has been compromised and what steps need to be taken to address any vulnerabilities.
As the investigation continues, Wise and its fintech partners are likely to face increased scrutiny from both regulators and customers. Transparency and prompt action will be key in maintaining trust and ensuring the security of customer data.
Conclusion
The Evolve Bank hack is a significant event that has impacted multiple fintech companies, including Wise. While the full extent of the breach is still being determined, the affected companies are taking necessary steps to protect their customers. This incident serves as a reminder of the ever-present threat of cyberattacks and the importance of robust security measures in the digital age.