Southwest Family of Companies Confirms Latest Data Breach |  Console and Associates, PC

Southwest Family of Companies Confirms Latest Data Breach | Console and Associates, PC

in 2022 August 1 The Southwestern Family of Companies (Southwestern) has confirmed that the company suffered a data breach in which an unauthorized party gained access to sensitive user data on Southwestern’s network. News of the Southwest breach is still fresh, and the company has yet to publicly release the data that was compromised as a result of the attack. So information about the breach is limited. However, Southwestern recently sent data breach letters to all affected parties, informing them of the incident and what they can do to protect themselves from identity theft and other fraud.

If you’ve been notified of a data breach, it’s important to understand who’s at risk and what you can do about it. To learn more about how to protect yourself from becoming a victim of fraud or identity theft and what your legal options are after the Southwest data breach, check out our latest article on the topic. here.

Details of the Southwest data breach

According to the official announcement of the company, in 2021 November 17 Southwestern detected suspicious activity on its IT systems. In response, Southwestern, with the help of cybersecurity professionals, launched an investigation to determine the nature and extent of the incident and whether it resulted in the exposure of user data.

in 2022 March 1 the company’s investigation revealed that an outsider had gained access to a limited number of files on Southwest’s network.

After learning that sensitive user data could be accessed by an unauthorized party, Southwestern reviewed the affected files to determine what information was compromised and which users were affected. Southwestern completed this review in 2022. June 21 The company’s official document did not mention the specific types of data that were breached. But state data breach notification laws require companies to report a breach any time a user’s name and one or more of the following types of data are leaked: Social Security numbers, driver’s license numbers, bank or credit card account numbers, or medical records. Thus, it is likely that the southwest breach involved one or more of these data types.

in 2022 August 1 Southwestern has sent data breach letters to all individuals whose information was compromised as a result of the recent data security incident.

Founded in 1855, the Southwestern Family of Companies is a holding company based in Nashville, Tennessee. The Southwestern Family of Companies owns and operates several smaller businesses, including:

  • Southwestern Legacy Insurance Group

  • Great American opportunities

  • Southwest Consulting

  • Southwest Publishing Group

  • Southwest Investment Group

  • Global concepts of education

  • American Family Heritage Life Insurance Company

  • Forward thinking

  • Southwest Travel Group

Southwestern employs more than 150 people and generates approximately $40 million in annual revenue.

When are companies legally liable for a data breach?

United States data breach and consumer protection laws require companies to protect consumer information they hold. So in some cases, companies that experience an otherwise avoidable data breach may be on the hook for consumer losses related to the breach. Of course, just because a business is hacked and its information ends up in the hands of a cybercriminal does not mean that the company will be financially responsible for the victim’s losses. Ultimately, these cases depend on whether the company was negligent and committed a breach.

The basic framework of negligence analysis requires the victim to prove:

  • The company owed the consumer a duty of care;

  • The company breached the duty of care to the consumer;

  • The company’s negligent actions caused or contributed to a data security breach; and

  • As a result of the violation, the user suffered legally recognized damages.

When it comes to storing user data, there are several ways a company can be negligent. However, most data breaches involving corporate negligence occur because the company does not use an adequate data protection system or does not train employees on how to handle user data securely. For example, considering phishing emails e-mail dangers, companies should train employees to recognize fraudulent e-mails. emails that appear legitimate. Similarly, organizations should regularly assess their data security systems to ensure they are up-to-date and protect against the latest cyber attack trends.

Companies that do not take their data security obligations seriously increase the likelihood of a data breach. Victims of a data breach who wish to learn more about their rights and whether they may be able to file a data breach class action lawsuit should contact a data breach attorney for assistance.

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