National Public Data (NPD), a Florida-based background check company, has filed for bankruptcy following a massive data breach that exposed sensitive information of up to 2.9 billion individuals. The compromised data includes Social Security numbers, names, email addresses, phone numbers, and mailing addresses. Initially, NPD reported that the breach affected approximately 1.3 million people, but further investigations revealed a much larger impact.
The breach has led to several class-action lawsuits and legal actions from at least 20 states seeking civil penalties against the company. In its bankruptcy filing, NPD claimed to have less than $50,000 in assets, making it unlikely that affected consumers will receive compensation or credit monitoring services from the company.
The data breach has raised significant concerns about data security and the responsibilities of companies handling vast amounts of personal information. Experts advise consumers to take proactive measures to protect themselves, such as placing a freeze on their credit reports to prevent unauthorized use of their information.
This incident underscores the importance of robust cybersecurity practices and the potential consequences of data breaches for both companies and consumers. As legal proceedings continue, the full extent of the breach’s impact and the company’s liabilities remain to be seen.
