Fintech Firms Report LockBit Ransomware Attack as Evolve Bank Shares Recent Affirm Data Breach Details
In a recent cybersecurity incident, Evolve Bank & Trust confirmed a significant data breach that has affected some customers of fintech companies Wise and Affirm. This breach, carried out by the notorious ransomware group LockBit, initially appeared to target the US Federal Reserve but was later identified as originating from Evolve Bank & Trust, an Arkansas-based financial institution.
Table of Contents
The Scope of the Breach
Evolve Bank disclosed that hackers accessed their systems through a malicious link clicked by an employee. This breach allowed cybercriminals to steal and leak sensitive customer information, including names, Social Security numbers, bank account details, and contact information. The attack, which also involved deploying ransomware on Evolve’s systems, was mitigated to some extent by the bank’s backup measures, limiting data loss and operational impact. Notably, Evolve reported no evidence of unauthorized access to customer funds.
Impact on Wise and Affirm Customers
Wise, a company known for international money transfers, revealed that some of its customers were affected by the breach. Although Wise no longer collaborates with Evolve, the bank had retained certain customer data from when they worked together between 2020 and 2023. This information included names, addresses, dates of birth, contact details, and social security numbers for US customers, among other identifying documents for non-US customers. Wise assured that its own systems were not compromised and that affected customers would be notified directly.
Affirm, a provider of buy-now-pay-later services, also disclosed in an SEC filing that some of its customers were impacted. Affirm shares personal information with Evolve to facilitate the issuance and servicing of Affirm Cards. While Affirm’s own systems remained secure, the company indicated that personal information of its card users was compromised as part of the Evolve breach. Despite this, the functionality of Affirm Cards was not affected.
Response and Ongoing Investigation
Evolve Bank has been transparent about the incident, confirming LockBit’s involvement and detailing the timeline of the breach. The bank emphasized that while data was stolen and leaked, no ransom was paid to the attackers. Evolve continues to investigate the full scope of the breach, including the potential compromise of employee information. The bank has committed to updating affected customers as more details emerge.
The data breach at Evolve Bank underscores the ongoing risks posed by sophisticated cybercriminal groups like LockBit. While both Wise and Affirm have confirmed that their systems remain secure, the incident highlights the importance of robust cybersecurity measures and the need for vigilance in safeguarding customer data. As the investigation continues, impacted customers are advised to stay alert for any communication from their financial service providers.