Block Inc. is the most well-known corporation to have a breach of client data; the financial technology company recently revealed that after leaving Block, a former employee had access to data pertaining to the Cash App’s investment function.
The former employee inappropriately accessed data comprising clients’ first names and their brokerage account numbers linked to trading on the Cash App platform, the business said in a late Monday filing.
The former employee had access to data for a day’s worth of trading activity, brokerage holdings, and the value of certain affected clients’ brokerage portfolios. The event took place on December 10.
According to a statement with the Securities and Exchange Commission, Block SQ, -0.22%, previously known as Square, also said that the reports did not include any personal information, including addresses, birthdates, Social Security numbers, usernames, passwords, payment credentials, or bank account information.
The business went on, “Customers outside of the United States and other Cash App products and features (other than stock activity) were not impacted.”
While employed by Block, the ex-employee had access to the data; nevertheless, the firm discovered that after the individual left, they had downloaded some of the reports and viewed them without authorization.
Block claimed that it had informed law enforcement after working with a forensics firm to analyze the event.
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Additionally, Square said that it will be contacting 8.2 million of its past and present customers of the incident and “notifying the applicable regulatory authorities.”
Block said in the filing, “The company takes the security of its customers’ information very seriously and continues to review and strengthen administrative and technical safeguards to protect its customers’ information.”
Block does not anticipate a major effect on the company’s financial results or operations, despite the fact that it was acknowledged that it was difficult to foresee expenditures related to the event.
Following a 6.4% loss in Tuesday’s trading, Block, which rebranded itself from Square late last year, had a 5.3% decrease in shares on Wednesday.
