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Re:

Affirm Card Users and the Evolve Bank Data Breach: What’s Confirmed

Evolve reported customer data access during periods in February and May 2024. Here’s what Affirm disclosed about its cardholders, what the fintech list does—and doesn’t—prove, and practical steps for people who received a notice.
From TheFinanceBase Team5 min to read

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Affirm said it believed information belonging to Affirm Card users was compromised in the 2024 Evolve Bank & Trust breach. Affirm also said its own systems were not compromised and cardholders could keep using their cards. Evolve reported that files containing customer information were accessed during periods in February and May 2024, but the information exposed varied by person. A company’s name in proposed settlement materials does not establish that every one of its customers was affected.

What happened at Evolve Bank?

Evolve Bank & Trust said it detected malfunctioning systems in late May 2024. The bank initially suspected hardware failure, then determined that unauthorized activity had occurred. In an August 27, 2024 update, Evolve said the available evidence pointed to a LockBit ransomware attack and that customer information had been accessed and downloaded during periods in February and May 2024.

Those details are Evolve’s account of the incident, not an independent forensic finding presented here. The bank said an employee appeared to have clicked a malicious link, some data was encrypted, backups helped limit operational effects, and it refused the ransom. Evolve stated: “The Bank has seen no new unauthorized activity since May 31, 2024.”

Was my Affirm Card information exposed?

Affirm’s July 1, 2024 Form 8-K said Evolve was the third-party issuer of the Affirm Card. Since Affirm shared card users’ personal information with Evolve to issue and service cards, Affirm said it believed those users’ information was compromised in the incident. The filing said the full scope and impact were not yet known at that time.

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Affirm also said its own information systems were not compromised and that cardholders could continue to transact. In its filing, the company wrote: “However, the Company’s information systems were not compromised, nor was the ability for Affirm Card holders to continue using their Affirm Card.” Affirm said it had notified law enforcement and card users and increased fraud monitoring. Its disclosure concerned Affirm Card information shared with Evolve; it did not say that all Affirm services or the banks that originate Affirm loans were affected.

What information did Evolve say may have been involved?

Evolve’s August 27 substitute notice said affected files appeared to contain different kinds of information for different people. The listed information included names, Social Security numbers, Evolve account numbers, dates of birth, and contact details. The notice covered personal, mortgage, trust, and small-business banking customers, as well as Open Banking partner customers. It did not say that every affected person had every listed data type exposed.

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  • Debit card numbers were involved for a small portion of people, according to Evolve.
  • Some files contained ACH transaction records, which included financial account and routing numbers and the names of payors and payees.

Use the data categories in your own notice—not the full list above—to assess what information may concern you.

Does the breach mean money was stolen?

Evolve said it had no evidence that criminals accessed customer funds. That is the bank’s reported finding about the incident; it is not a guarantee about every account or about later unauthorized activity. Check your bank and card transactions and report any suspicious item directly to the financial institution using contact information from its official website or your card.

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Which fintech companies were named, and what does that mean?

A proposed settlement agreement defines a grouping called “Evolve FinTechs” and names Affirm, EarnIn, Branch, Bond, Juno, Dave, Landa, Mercury, Plaid, Shopify, Step, Stripe, Wise, and Yotta. Their inclusion in that defined grouping is not proof that every customer of each company was notified, had data accessed, or experienced the same kind of exposure. The available sources do not establish a complete firm-by-firm exposure list or a definitive national count of affected people.

For scale, the Delaware Department of Justice breach database lists 27,417 Delaware residents for Evolve Bank & Trust, with an incident period of February 9 through May 31, 2024 and a notice date of July 8, 2024. That is a state-specific notification figure, not a national total or a confirmed count for any one fintech partner.

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What should you do if you received an Evolve breach notice?

  1. Read your individual notice. Confirm which company sent it, which data categories it says may concern you, and whether it lists an enrollment deadline or eligibility requirements for any services.
  2. Review financial activity. Check bank, card, and other relevant account transactions for unfamiliar activity. Contact the institution promptly if you spot anything suspicious.
  3. Check your credit reports and consider a fraud alert. Evolve encouraged affected people and partner-company customers to monitor accounts and credit reports and referred them to free fraud alerts and free credit reports. Use the official credit-reporting channels for your country.
  4. Assess Evolve’s historical monitoring offer against your notice. Evolve said it began emailing individual notices on July 8, 2024 and offered affected individuals two years of credit monitoring and identity protection. The offer’s current availability and your eligibility are not established here, so follow the instructions and deadlines in your personal notice.
  5. Be alert for impersonation attempts. Evolve warned that scammers may pose as companies or people you know. Treat unexpected messages asking for passwords, payment, or sensitive information cautiously; contact the company through a channel you find independently.
  6. Report suspected identity theft or fraud. Evolve said people could report suspected identity theft or fraud to the FTC or law enforcement. Keep copies of notices, account records, and reports for follow-up.
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What the Federal Reserve action does—and does not—show

On June 14, 2024, before the breach disclosures, the Federal Reserve Board announced an enforcement action against Evolve Bancorp and Evolve Bank & Trust. The Board said examinations in 2023 found deficiencies in risk management for fintech relationships, anti-money-laundering controls, and consumer compliance, and required improvements to oversight and monitoring of fintech partnerships and other programs.

The Board said: “Examinations conducted in 2023 found that Evolve engaged in unsafe and unsound banking practices by failing to have in place an effective risk management framework for those partnerships.” The action addressed those examination findings; it did not establish the cause of the later-disclosed breach. The Federal Reserve also said its action was independent of Synapse Financial Technologies’ bankruptcy proceedings.

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What is the status of the proposed settlement?

The court-authorized FAQ for In Re: Evolve Bank & Trust Customer Data Security Breach Litigation describes allegations of unauthorized access and exfiltration in February and May 2024. It also says Evolve denies wrongdoing and that no court had determined that Evolve did anything wrong. The FAQ described the settlement as awaiting final approval when it was accessed for the source material used here; that does not establish its present status. Consult the court docket for any current ruling or changes before relying on the settlement as final.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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