Ally Bank class action alleges co. negligence led to data breach

Ally Bank class action overview: 

• Who: Plaintiff Sebestian Owens has filed a class action lawsuit against Ally Financial and its subsidiary Ally Bank.  
• Why: The Ally Bank class action lawsuit stems from a data breach that was made public in May 2024. 
• Where: The Ally Bank data breach lawsuit was filed in North Carolina federal court.

A new class action lawsuit claims that Ally Bank failed to protect its customers from a cyberattack that compromised their personal information.

According to the Ally Bank class action, an unknown hacker accessed the bank’s network and computer systems earlier this year. This event compromised personally identifiable information including customers’ Social Security numbers, dates of birth and auto account numbers.

The lawsuit, filed by plaintiff Sebestian Owens, alleges that Ally Bank failed to implement standard levels of data security or enact reasonable protocols to protect clients’ personally identifiable information. 

The lawsuit cites multiple corporations that recently experienced cyberattacks, including Estee Lauder, Facebook, Microsoft and Wattpad. Based on these data security events, Ally Bank should have been aware of the increased risk of cyberattacks and should have taken steps to improve security, the class action claims.

Class action: Ally Bank postponed notifying customers of breach 

The Ally Bank class action also alleges that Ally Bank failed to notify impacted customers in a timely manner.

The Massachusetts Attorney General Angela Campbell’s office sent notice letters to affected individuals on May 23, 2024, informing them of the Ally Bank data breach. Ally admitted it became aware of the cyberattack a month before these letters were distributed.  

Owens alleges that during this delay, the hacker had time to post and sell Ally customers’ personal information on the dark web. This practice is common among hackers who target large corporations and financial institutes, the lawsuit claims.

This case is not the first class action lawsuit that Ally Bank has faced over allegations that it failed to maintain data securely. In 2021, the bank announced that a programming code error revealed usernames and passwords to third-party associates. Subsequently, David De Medicis filed a lawsuit, which was eventually dismissed after a judge determined the plaintiff had failed to prove injury.  

Was your personal information compromised by the Ally Bank data breach? Let us know in the comments.

The Ally Bank class action is Owens v. Ally Bank et al., Case No. 3:24-cv-00811, in the U.S. District Court for the Western District of North Carolina.

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