Cyber Risks · Krebs on Security

Payday Loan Network Sold Info to Scammers

Summary: The FTC is suing data broker LeapLab for buying payday loan applications from financially strapped consumers and selling them to marketers it knew had no legitimate need for the information. The FTC charges that the defendants sold about five percent of the applications to online lenders for $10 to $150 per lead, and the remaining 95 percent for roughly $0.50 each to third parties who were not lenders, with one buyer, Ideal Financial Solutions, allegedly using the data to withdraw millions from consumers' accounts without authorization.

What you should know: The FTC says Ideal Financial bought information on at least 2.2 million consumers from data brokers and used it to make more than $43 million in unauthorized debits, and that LeapLab supplied account data for only about 16 percent of those victims - meaning the rest of the data came from other brokers still in the market.

Read the original at Krebs on Security ↗

Topics
Data Breaches
Related