What Do I Need to Know About the Guaranteed Rate Data Security Breach?

It makes sense that a mortgage company would be the target of hackers because of the type of information the hackers could get. Anybody who's ever had a mortgage remembers the mountain of paperwork required. In recent years, the Guaranteed Rate data security breach has been just one of dozens. 

Who can forget the infamous Equifax debacle where 148 million people's highly sensitive data was compromised. In today's marketplace, it's common to have personal login accounts for everything from apps to consumer goods websites which are all vulnerable to attack. As recently as October 2021, potentially 82 million customers of Whole Foods Market had their credit card details compromised at more than 100 stores. 

Companies like Neiman Marcus, Facebook, LinkedIn, Uber, Marriott Hotels, and First American Financial Corporation have all been hacked in 2021 alone, leaving millions of customers at risk.

It's no surprise that security breaches are on the rise. In 2020 the global computer security software company, McAfee, reported the cost of global cybercrime in 2021 was expected to be in the trillions. One would think major companies would be able to protect your data from prying eyes. Still, missing security patches or system malfunctions can happen. In the case of Guaranteed Rate's data security breach, email phishing was the culprit. 

Phishing tricks victims into opening an email with a malicious link that can install malware or reveal sensitive information. Hackers are known to go to great lengths to spoof organizations to trick victims into thinking the emails are legitimate. They do this by using the same typefaces, logos, signatures, and phrasing of the real business. However, a billion-dollar mortgage company that originates over 100,000 mortgages per year should be more vigilant in training its employees in their handling of personal data.

Financial services have the duty to protect customer information, especially when the average financial services employee has access to around 11 million files. Over 64% of all employees who work in financial service companies have access to more than 1,000 sensitive files. 

Our modern world is highly dependent upon the transfer of digital data to make our lives more convenient and to get things done quickly and efficiently. Still, when we provide sensitive data to financial institutions, we have the expectation that our privacy will be protected. When a data security breach occurs, we're left vulnerable to being the victim of fraud. Identity theft damage doesn't end with financial loss. The hassle, worry, and inconvenience of clearing up issues can be exhausting and time-consuming. 

Suppose you suffer losses, whether financial or emotional. In that case, you could be eligible for compensation by filing a data privacy lawsuit against the company responsible for the breach. Let's take a minute to go over what the possible compensation could look like.

Rarely are you able to sue the original culprit behind the data breach, which is the hacker. That’s because the hacker could be, and often is in another country. However, you can hold the company that is responsible for allowing the breach to occur accountable because they are ultimately responsible for safeguarding your personal information. When they fail in that duty, they open the door for a lawsuit. Depending on the type of breach and the damages that ensued, you may be eligible for a sizeable amount of compensation which may include the following:

• Costs associated with replacing credit and debit cards
• Expenses related to correcting information damaged in the security breach
• Service fees for resources that monitor and protect your personal information after the breach
• The cost of credit reports
• The cost of credit insurance
• Emotional distress
• Invasion of privacy
• Damage to credit
• Damage to reputation as part of the loss of credit
• Any additional out-of-pocket expenses related to the breach

Courts will expect that you took measures to protect yourself after you were informed of the data breach. In the case of the Guaranteed Rate data security breach, you should have received a letter from the corporation informing you of the breach, along with instructions on how to protect yourself. If you did not follow those steps, your award could potentially be less. 

It's also important to save all correspondence with Guaranteed Rate, Inc. concerning the breach and all other communication you have with credit bureaus along with documenting any evidence of fraud or any other damaging incidents.

There's no doubt that Guaranteed Rate is a successful company. Furthermore, there is no indication that the 2017 data breach had anything to do with employees purposely allowing hackers access to customer data. However, they've been in some serious hot water since then. 

In early 2020, Guaranteed Rate, Inc. agreed to pay the government $15 million to settle a 2017 lawsuit filed in New York federal court by a whistleblower who alleged the company was driving underwriters to endorse ineligible loans and make false statements to the government to get insurance for home loan mortgages.

The whistleblower also alleged the company fired her after she brought forth her concerns that the company was "engaging in fraud and submitting false claims" to the government. As part of the settlement, the corporation admitted to giving FHA underwriters gifts and commissions in violation of rules. Furthermore, there was an admission that it failed to adhere to requirements of self-reporting and certified loans for government insurance that were not eligible.

When companies settle lawsuits, that's often because they're not willing to take their chances in court where the damages awarded could be substantially more. That may be because they know the evidence is not in their favor. According to the Justice Department, before and after Guaranteed Rate was notified of a federal investigation, the company started to take "significant measures" to end these practices.

Recovering financial loss and other damages related to identity theft is complex, and it's a constantly evolving area of the law. When it comes to something as crucial as your personal identity, it's important to use an attorney that specializes in this field. 

Our data privacy attorneys not only have the expertise needed to tackle this challenging problem but also the resources that may be needed. Resources that may be relevant to your case could include private investigators, forensic accountants, and other data privacy experts who can help your case.

In these kinds of cases, timing is crucial because every state has its own statute of limitations for bringing a data security breach lawsuit. However, in the case of a class action lawsuit, the time restriction could change. When you're in doubt whether you have a case or not against Guaranteed Rate, Inc. for the compromise of your personal data, contact one of our data privacy lawyers for a free and confidential case evaluation.