Recently, Proliant Settlement Systems, LLC confirmed that the company suffered a data breach after an unauthorized party gained access to the company’s computer network and the sensitive consumer data it contained. According to Proliant, the breach resulted in compromised driver’s license numbers, social security numbers, passport numbers and financial information. On June 27, 2002, Proliant filed an official notice of the data breach and sent out data breach letters to all affected parties. Up to 12,697 people are believed to have been affected by the Proliant data breach.
If you’ve received a data breach notification, it’s important that you understand what is at risk and what you can do about it. To learn more about how to protect yourself from being a victim of fraud or identity theft, and what your legal options are after the Proliant Settlement Systems data breach, please read our recent article on the subject here.
What we know about the Proliant Settlement Systems data breach
Based on an official filing with an attorney general’s office, Proliant first learned of the incident around July 16, 2021. Apparently, it was at this point that Proliant was made aware that there was unauthorized access to its cloud computing provider, which may have exposed the consumer to data held by Proliant.
When Proliant Settlement Systems determined that sensitive consumer data was being compromised, it reviewed the affected files to determine exactly what information was compromised. While the information breached varies from person to person, it may include your name, driver’s license number, social security number, passport number, and financial information.
On June 27, 2022, Proliant Settlement Systems sent out data breach letters to anyone whose information was compromised as a result of the recent data security incident. Based on the most recent filings, 12,697 people were affected by the breach of the Proliant Settlement System.
Learn more about Proliant Settlement Systems, LLC
Proliant Settlement Systems, LLC is a finance and technology company focused on developing software that enables individuals to open their own title companies. Proliant has created a turnkey franchise system that the company claims simplifies the process of starting and managing a title business. The company supports new and existing title companies by providing IT infrastructure, centralized processing, pre-launch training, back-office title production, quality control, post-closing assistance and ongoing support. Proliant Settlement Systems employs more than 50 people and has annual revenues of approximately $5 million. Proliant Settlement Systems, Inc. is located in Auburn Hills, Michigan.
Liability after a data breach
The Proliant data breach is relatively new news and more information is expected to be released in the near future. At this point, however, it appears that Proliant’s breach involved unauthorized access to the company’s IT network, giving the unauthorized party access to the sensitive data of individuals who may not even have known that Proliant had their information would have. This is because Proliant acts as a supplier for its franchisee title companies.
In a situation like this, determining who is responsible for a data breach can be complex, and consumers whose information has been leaked may not know who to contact for redress.
In principle, every company that maintains, stores, transmits or receives consumer data has a legal obligation towards the consumer. It is generally irrelevant whether the organization holding consumer information obtained the data directly from the consumer or through a third party – the question is whether the party disclosing the information was negligent.
As for Proliant’s data breach, it appears that based on the information currently available, Proliant is the most likely liable party – although it’s too early to tell if the breach was a result of the company’s negligence. In the context of data breaches, a victim can prove that a company acted negligently by noting the following elements:
The organization owed the victim a duty of care;
The organization failed in its duty to the victim;
The organization’s negligence caused or contributed to the victim’s harm (ie, identity theft); and
The victim suffered economic or immaterial damage as a result.
While this sounds simple, proving these elements can be challenging, especially when multiple companies are involved. An experienced data breach attorney can help Proliant data breach victims evaluate their options and determine if they may have a legal claim against the company.