fbpx

American Family Life Insurance Data Breach Class Action

As part of its business, American Family Life Insurance Company collects and stores the personally identifiable information (PII) of its customers. But the complaint for this class action alleges that the company failed to properly secure and safeguard this information, leading to its compromise in a data breach beginning on or around December 5, 2021.

A class and a subclass have been proposed for this action:

  • The Nationwide Class is all individuals in the US whose PII or financial information was exposed to unauthorized third parties in the data breach that took place between December 5 and December 11, 2021.
  • The California Subclass is all individuals in California whose PII or financial information was exposed to unauthorized third parties in the data breach that took place between December 5 and December 11, 2021.

According to the complaint, American Family claims to have noticed unusual activity in its systems as early as December 5. However, the complaint alleges that the company did not tell victims about the data breach until January 14, 2022, more than a month later, when it sent out a notice about the data breach.

“According to the sample data breach notification [American Family] provided to the California Attorney General’s office on January 14, 2022,’ the complaint alleges, American Family “believes that unauthorized parties used an automated bot process to enter certain personal information from unknown sources into the AFLIC online quoting platform, and by doing so, they may have accessed” customer driver’s license numbers “as part of the platform’s pre-fill function.”

The complaint alleges that American Family “had and continues to have obligations created by reasonable industry standards, common law, state statutory law, and its own assurances and representations to keep” PII confidential and to protect it from access by cybercriminals.

Yet even now, the complaint claims, the victims of the data breach are still “in the dark regarding what particular data was stolen, the particular malware used, what steps are being taken, if any, to secure their PII and financial information going forward.”

The complaint quotes the Data Breach and Encryption Handbook as saying, “In almost all cases, the data breaches that occurred could have been prevented by proper planning and the correct design and implementation of appropriate security solutions.”

The complaint itself alleges, “Most of the reported data breaches are a result of lax security and the failure to created and enforce appropriate security policies, rules, and procedures…” It claims that American Family “had the resources to deploy robust cybersecurity protocols. It knew, or should have known, that the development of such protocols were necessary to fulfill its statutory and common law duties…” and that its “failure to do so is, therefore, intentional, reckless, and/or grossly negligent.”

The claims for relief include negligence, invasion of privacy, and breach of confidence, among other things.

Article Type: Lawsuit
Topic: Privacy

Most Recent Case Event

American Family Life Insurance Exposure of PII Complaint

February 15, 2022

As part of its business, American Family Life Insurance Company collects and stores the personally identifiable information (PII) of its customers. But the complaint for this class action alleges that the company failed to properly secure and safeguard this information, leading to its compromise in a data breach beginning on or around December 5, 2021.

American Family Life Insurance Exposure of PII Complaint

Case Event History

American Family Life Insurance Exposure of PII Complaint

February 15, 2022

As part of its business, American Family Life Insurance Company collects and stores the personally identifiable information (PII) of its customers. But the complaint for this class action alleges that the company failed to properly secure and safeguard this information, leading to its compromise in a data breach beginning on or around December 5, 2021.

American Family Life Insurance Exposure of PII Complaint
Tags: Exposing Private Information, Exposure to cyber crime, Your Privacy