The High Cost of Underestimating Cybersecurity: Lessons from the National Public Data Breach

In a recent and severe development, National Public Data (NPD), a well-known provider of background checks and personal lookup services, has filed for bankruptcy after experiencing one of the most massive data breaches in recent memory.

The cybersecurity community was shaken when a database stolen from NPD surfaced on Breach Forums, a notorious dark web marketplace, revealing the extent of the breach: 2.7 billion records and 277GB of sensitive data.

The data breach exposed the personal information of hundreds of millions, including

• Social Security numbers
• Full names
• Addresses
• Phone numbers

**This triggered a wave of lawsuits and heightened scrutiny from both state and federal authorities

Victims affected by the leak have already filed a class-action lawsuit accusing NPD of negligence, unjust enrichment, and failing to protect their sensitive information. With mounting legal pressure, NPD’s parent company, Jericho Pictures, faces demand for substantial damages, and the company has been forced to file for bankruptcy to manage the surge of lawsuits.

Court documents reveal the enormity of the situation: NPD may have to notify and pay for credit monitoring for "hundreds of millions of potentially impacted individuals," given that the breach exposed 272 million unique Social Security numbers and 600 million phone numbers. The documents also highlight the company’s struggle to generate enough revenue to cover the extensive liabilities, defend itself against the lawsuits, and support ongoing investigations.

Adding to the company’s woes, attorneys general from over 20 states are demanding civil penalties, and the US Federal Trade Commission is scrutinizing the incident. The first class-action lawsuit against Jericho Pictures has been temporarily stayed by a Florida court, likely due to the bankruptcy filing, but the legal battles are far from over.

The leaked data continues to pose a significant threat, as malicious actors can still exploit it for financial gain. As researchers point out, the leaked data still poses a serious risk. Cybercriminals could use this information to carry out a range of attacks, from identity theft to fraudulent schemes, and impersonate tax authorities to target victims financially.

This breach serves as a stark reminder of the devastating impact data breaches can have on companies and the individuals whose information is exposed. The fallout from this incident will likely continue for years, with NPD’s bankruptcy filing signaling that even large companies are not immune to the consequences of failing to protect sensitive data.

**Why Investing in Cybersecurity is Critical for Every Business

Many businesses underestimate cybersecurity, seeing it as a secondary concern. However, as the NPD breach shows, the fallout from such incidents can be severe, impacting finances, reputation, and legal standing. In NPD’s case, the company now faces significant challenges, from financial losses to reputational damage and legal repercussions.

The truth is cybersecurity isn’t just about preventing attacks; it's about building resilience. Every business is a potential target, and a strong cybersecurity strategy ensures that if an attack does occur, your business can recover quickly with minimal disruption. NPD’s story serves as a cautionary tale, showing that cybersecurity must be proactive, not reactive, and integrated into every aspect of a business’s operations.

Data breaches and cyber threats will continue to evolve, and so must our defenses. Investing in cybersecurity is not just a step toward compliance but a strategic move that can save a business from crippling consequences. The cost of a robust cybersecurity framework is minimal compared to the price of a data breach that could lead to financial loss, loss of customer trust, and, as NPD has experienced, potentially the end of the business itself.

Don’t let your business become the next cautionary tale. At Tekie Geek, we’re dedicated to helping businesses protect what matters most, ensuring peace of mind for you and your clients. Contact us today to learn how we can support your business’s cybersecurity journey and help you stay one step ahead in an ever-evolving digital world. Investing in cybersecurity today is an investment in the future of your business.

‍