Editor’s Note: The recent exposure of a potentially record-breaking data breach involving Jerico Pictures Inc., operating under the name National Public Data (NPD), is a sobering reminder of the critical importance of data security in today’s digital age. With the personal information of nearly 2.9 billion individuals allegedly compromised, this incident underscores the far-reaching implications of lax data protection measures. As cybersecurity, information governance, and eDiscovery professionals, it is imperative to closely follow the developments of this case, which may not only influence the future of data protection laws but also serve as a stark warning to organizations about the consequences of inadequate security practices. The ongoing legal battle could set new precedents in the enforcement of data privacy standards, emphasizing the urgent need for companies to adopt stringent cybersecurity protocols to safeguard sensitive information.


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Industry News – Cybersecurity Beat

National Public Data Breach Exposes 2.9 Billion Individuals’ Information

ComplexDiscovery Staff

In a troubling revelation, the background check company Jerico Pictures Inc., operating under the name National Public Data (NPD), has been implicated in what is potentially one of the largest data breaches in history. Allegedly, the breach, which has yet to be confirmed by NPD, exposed the personal information of approximately 2.9 billion individuals. This significant incident has been surfaced through a class-action lawsuit filed in early August with the U.S. District Court for the Southern District of Florida. The plaintiff, Christopher Hofmann, was reportedly alerted to the breach on July 24 by his identity-theft protection service provider.

The breach, allegedly executed by the cybercriminal group USDoD, involved a massive 277GB database containing sensitive data such as Social Security numbers, full names, and both current and former addresses. This data has purportedly been listed for sale on the dark web for $3.5 million. The breach is particularly alarming because the information appears to have been gathered without the knowledge or consent of the affected individuals. NPD reportedly employed a technique known as data scraping to collect information from non-public sources.

Hofmann, alongside other plaintiffs, has accused NPD of negligence, unjust enrichment, and breaches of fiduciary duty. The lawsuit demands comprehensive actions from NPD, including database scanning, data segmentation, and the employment of a threat-management system. Additionally, the court has been requested to mandate the secure deletion of all affected data and to require NPD to use encryption for any future data collection.

The potential scale of this breach is reminiscent of the infamous 2013 Yahoo breach, which also affected approximately 3 billion users. However, unlike the Yahoo incident, the method and exact timeline of the breach at NPD remain unclear. The exposure extends to data that includes details of deceased relatives, emphasizing the extensive reach of the compromised database.

The implications of this breach are far-reaching, impacting over a third of the global population. Legal experts and cybersecurity analysts emphasize the severe legal and ethical ramifications for NPD. Several industry experts recommend that affected individuals employ identity theft protection services to monitor any potential misuse of their data.

To address this unprecedented breach, the lawsuit has also called for an annual third-party assessment of NPD’s cybersecurity frameworks. This measure is intended to ensure enhanced protection and prevent future breaches. As the case progresses, it underscores the vital necessity for stringent data security measures within corporations handling vast amounts of sensitive information.

The scale of this alleged breach highlights the growing concern over data privacy and security in the digital age. With the increasing reliance on digital platforms and services, personal information has become a valuable commodity for both legitimate businesses and cybercriminals. This incident serves as a stark reminder of the vulnerabilities inherent in large-scale data collection and storage practices.

Data scraping, the technique allegedly used by NPD to gather information, is a controversial practice that involves automated collection of data from websites and other digital sources. While it can be used for legitimate purposes, such as market research or academic studies, its use in collecting personal information without consent raises significant ethical and legal questions.

The involvement of the cybercriminal group USDoD adds another layer of complexity to the case. Cybercriminal organizations have become increasingly sophisticated in their methods, often targeting large databases of personal information for financial gain or other malicious purposes. The sale of such data on the dark web can lead to various forms of identity theft, financial fraud, and other criminal activities.

The legal implications of this breach extend beyond the immediate lawsuit. It may prompt regulatory bodies to reassess current data protection laws and potentially implement stricter regulations for companies handling personal information. The case could set a precedent for how similar breaches are handled in the future, potentially leading to more severe penalties for companies that fail to adequately protect user data.

For individuals whose data may have been compromised, the consequences can be long-lasting. Identity theft can have severe financial and personal repercussions, often taking years to fully resolve. This underscores the importance of proactive measures such as regular credit monitoring and the use of strong, unique passwords for online accounts.

The NPD breach also highlights the challenges faced by companies in the background check and data aggregation industry. These businesses often handle vast amounts of sensitive personal information, making them attractive targets for cybercriminals. This incident may lead to increased scrutiny of their data collection and storage practices, potentially resulting in industry-wide changes to enhance security measures.

The National Public Data breach highlights the urgent need for robust cybersecurity protocols and the ethical responsibility companies have in protecting personal data. The legal proceedings against NPD will likely set a significant precedent for data privacy and security practices moving forward. As the digital landscape continues to evolve, it is crucial for both businesses and individuals to remain vigilant and prioritize data protection to mitigate the risks of such large-scale breaches in the future.

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