Massive Data Breach at National Public Data Leads to Bankruptcy and Legal Troubles

The cybersecurity world was rocked by the news of a massive data breach that may have impacted hundreds of millions of people. National Public Data (NPD), a company responsible for the leak of Social Security numbers, has now filed for bankruptcy in the face of mounting legal challenges.

It all started when a threat actor posted a database stolen from NPD on the dark web marketplace BreachForums. The database, a whopping 277GB in size, contained 2.7 billion records including Social Security numbers, names, addresses, and phone numbers.

After confirming the breach, NPD faced a class-action lawsuit from victims accusing the company of negligence and other violations. As a result, the company filed for bankruptcy last week, citing the inability to generate enough revenue to address the extensive potential liabilities.

State prosecutors from over 20 states are demanding civil penalties from NPD for allowing the breach to occur. The US Federal Trade Commission is also investigating the incident, highlighting the severity of the breach.

Researchers warn that malicious actors could use the stolen data for identity theft, phishing, and other fraudulent activities. The bankruptcy filing may help NPD manage the onslaught of lawsuits, with the first class-action lawsuit against the company temporarily stayed by a court in Florida.

The fallout from this breach serves as a stark reminder of the importance of cybersecurity measures in protecting sensitive personal information. The implications of this breach are far-reaching and could have long-lasting effects on the individuals whose data was compromised.