Desjardins financial data breach security flaw iot gdpr hipaa awareness training cybersecurity phish

Financial Institution Desjardin’s Data Breach

2.7 million people and 173,000 businesses are impacted by the data breach at Desjardins Group — one of the largest data breaches among Canadian financial institutions.

Now, in its aftermath, there’s a warning about fraudulent emails, and a class-action lawsuit is in the works, according to CBC News. Here’s a breakdown of what went wrong and what’s happening now.

What happened?

Officials at Desjardins revealed in June that an employee improperly collected information about customers and shared it with a third party outside the financial institution, which is the largest federation of credit unions in North America, with outlets across Quebec and Ontario.

The leaked information includes names, addresses, birth dates, social insurance numbers, email addresses and information about transaction habits. Passwords, security questions, and personal identification numbers weren’t compromised, according to Desjardins.

The employee, a man who has not been publicly identified, was fired. He was arrested by Laval police but has not been charged.

What are the risks?

Desjardins said it has not seen a spike in fraud cases since the breach. But important questions remain, says one Montreal-based security expert.

“The first thing we need to find out is where is the information — that wasn’t answered yesterday,” said Claude Sarrazin, who has been watching the case closely. “Who has control over that information?”

Desjardins flagged a suspicious transaction to Laval police last December, and it took several months for the institution to learn the scope of the scheme.

Desjardins financial data breach security flaw iot gdpr hipaa awareness training cybersecurity phish

In May, police told Desjardins that the personal information of some of its members had been leaked. An internal investigation was then conducted with the help of Laval police.

What Desjardins is doing

Desjardins said extra security measures have been put in place to protect data, such as requiring additional steps to confirm a member’s identity. It is also contacting every member affected by the leak.

“We’re communicating directly with every member who’s been affected to explain what happened and what they can do,” Desjardins said.

On Friday, Desjardins extended its offer to pay for a credit monitoring plan and identity theft insurance for affected members for five years, up from the 12 months announced a day earlier.

Class action in the works

A proposed class action filed in Quebec Superior Court on Friday alleges the co-operative financial group was negligent in safeguarding its members’ personal and financial information.

The lawsuit argues Desjardins failed to live up to its obligations and owes affected members $300 each, plus punitive damages.

The suit has not yet been certified by a judge — a requirement before it can proceed.

Julie Courchesne, a Desjardins client for more than 35 years, said she’s “very frustrated” by the situation. She said the breach will lead to a feeling of uncertainty about her private information “for the rest of our lives.”

Warnings of fraud

In the aftermath of the data breach, Quebec’s regulator of financial institutions warned that Desjardins members may be the target of fraudulent emails, text messages, and telephone calls.

“Fraudsters may be tempted to contact you to extract personal information under the pretext that they are doing so in connection with security measures or updates stemming from the incident,” the Autorités des marchés financiers (AMF) said Friday.

Desjardins financial data breach security flaw iot gdpr hipaa awareness training cybersecurity phish

The AMF said you should “never reply” to such requests.

“Contrary to what the fraudsters may try to make you believe, such emails and text messages do not come from your financial institution, even if they bear the institution’s logo,” the statement said.

Shingler, Benjamin. (2019, June 21). What you need to know about the Desjardins data breach. CBC News.

  • 18