Anne Bucher  |  May 2, 2022

Category: Data Breach

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American Financial Resources Data Breach Class Action Lawsuit Overview:

  • Who: Plaintiff Dorothy Zelenski has filed a class action lawsuit against mortgage lender American Financial Resources.
  • Why: The mortgage lender’s alleged failure to adequately safeguard customer information left it vulnerable to a data breach in late 2021.
  • Where: The data breach class action lawsuit was filed in New Jersey federal court.

American Financial Resources allegedly failed to adequately safeguard private information, leaving the sensitive data vulnerable to a breach in December 2021, according to a recent class action lawsuit.

The data breach class action lawsuit says that American Financial Resources learned of a data breach that took place from Dec. 6-20, 2021 in which an unauthorized actor gained access to the mortgage lender’s customer data.

The personal information compromised in the American Financial Resources data breach allegedly included customers’ names, Social Security numbers and driver’s license numbers.

The mortgage lender failed in its obligation to keep customers’ private information confidential and to protect it from unauthorized access, the data breach class action lawsuit says.

Data Breach Class Action Says Mortgage Lender Notified Customers Too Late

Plaintiff Dorothy Zelenski says that American Financial Resources notified affected customers about the data breach in March even though the mortgage lender allegedly completed its investigation into the data breach on Feb. 4, 2022.

“Defendant offered no explanation for the delay between the initial discovery of the Breach and the belated notification to affected customers, which resulted in Plaintiff and Class Members suffering harm they otherwise could have avoided had a timely disclosure been made,” Zelenski alleges in the data breach class action lawsuit.

Zelenski says American Financial Resources also failed to provide important details about the data breach, such as how unauthorized parties accessed its network, whether the information was encrypted and how many customers were affected.

The data breach class action lawsuit says customers’ sensitive data is likely for sale on the dark web and that unauthorized individuals may have already accessed their unencrypted and unredacted personal information. Zelenski says that she and the putative class members are therefore at risk of identity theft and fraud.

Zelenski filed the American Financial Resources class action lawsuit on behalf of herself and a proposed class of persons nationwide whose private information was compromised in the December 2021 data breach.

In 2019, tens of thousands of potential mortgage borrowers may have been affected by a massive Ascension customer data breach.

Were you affected by the American Financial Resources data breach? Tell us your thoughts in the comments below!

Zelenski is represented by Gary S. Graifman and Melissa R. Emert of Kantrowitz Goldhamer & Graifman PC.

The American Financial Resources Data Breach Class Action Lawsuit is Dorothy Zelenski v. American Financial Resources Inc., Case No. 2:22-cv-02392, in the U.S. District Court for the District of New Jersey.


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2 thoughts onData Breach Class Action Claims Mortgage Lender Failed To Protect Client Information

  1. LaTunya BRIGHT says:

    Add me

    1. Joey Hill says:

      Add me

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