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Lawsuit Filed Against MoneyGram Over Data Breach That Compromised Customers' Personal and Financial Information

1. Consumers filed a lawsuit against MoneyGram over a data breach. 2. Sensitive customer data including Social Security numbers was compromised. 3. MoneyGram delayed notifying customers about the breach for over two weeks. 4. The lawsuit aims to recover damages from the breach's financial impact.

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Why Very Bearish?

Data breaches often lead to significant reputational damage and financial loss, similar to past examples with companies like Equifax, which faced lawsuits and plunging stock prices after their breach.

How important is it?

The article highlights significant risks associated with data breaches affecting consumer trust which could impact MGI's financial position and stock market performance.

Why Short Term?

Immediate scrutiny and potential legal repercussions can impact MGI's stock performance in the near future, much like in previous cases of public data breaches.

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MGI
DALLAS, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Consumers have taken legal action against MoneyGram, filing a lawsuit against the money transfer services provider over a data breach that compromised customers’ personal and financial information. According to the lawsuit filed by the law firm FeganScott, MoneyGram became aware of the data breach in late September but did not publicly warn customers about the breach until October 7. In its announcement, the company disclosed that the information stolen during the breach included Social Security numbers, government identification documents, bank account numbers, and transaction information, among other highly sensitive data. “MoneyGram is a popular service used by people worldwide to send money. A company operating in this space has a duty to make data security an absolute priority given the nature of its business – but clearly, that’s not the case here,” said Elizabeth Fegan, managing partner of FeganScott. “What’s worse is that not only did MoneyGram allow bad actors to steal user data, but it also failed to notify those users that their information had been compromised for more than two weeks, putting them in serious danger of financial fraud and identity theft.” In an October statement, MoneyGram reported the breach, but it has yet to formally announce its full scale and impact. MoneyGram is one of the largest money transfer services companies in the world, operating in more than 200 countries and territories across more than 430,000 locations. “Consumers rely on MoneyGram for essential financial services, yet the company still cannot even identify whose data was impacted by the September breach,” added Fegan. “If that’s not gross negligence and a complete disregard for customer trust, I don’t know what is. In a world where data breaches are a constant thread, it’s shocking that a company of this size has failed so miserably in cybersecurity.” The lawsuit seeks to recover damages for consumers’ monetary losses due to the breach. MoneyGram customers are urged to contact contact@feganscott.com or visit the firm’s website to learn more about their rights. About FeganScott FeganScott is a national class action law firm dedicated to helping victims of consumer fraud, data privacy, sexual abuse, and discrimination. The firm is championed by acclaimed veteran class action attorneys who have successfully recovered $14 billion for victims nationwide. FeganScott is committed to pursuing successful outcomes with integrity and excellence while holding the responsible parties accountable.  Media Contact  Mark FirmaniFeganscottpr@firmani.com 

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