Report: Experian Faces Class-Action Lawsuit Over Security Concerns

Consumer credit bureau Experian is facing a class-action lawsuit over allegations that it didn’t do enough to prevent identity thieves from sabotaging peoples’ accounts.

KrebsOnSecurity reported Friday (Aug. 5) that the legal filing alleged that identity thieves had been able to get control of individuals’ accounts by signing up for new accounts using the victim’s personal information and a different email address.

The report argued that Experian’s practice of allowing account re-registration, without verifying that the existing account authorized it to happen, violated the Fair Credit Reporting Act.

Experian, responding to a previous report, said the company does “all kinds of things” to prevent the abuse of its systems. In a statement to KrebsOnSecurity, the company said notifies the original email on file if someone tries to make a second account.

The statement noted the company does not “disclose additional processes for obvious security reasons; however, our data and analytical capabilities verify identity elements across multiple data sources and are not visible to the consumer.

“This is designed to create a more positive experience for our consumers and to provide additional layers of protection. We take consumer privacy and security seriously, and we continually review our security processes to guard against constant and evolving threats posed by fraudsters.”

The threat of digital fraud has loomed large for Americans as the internet has grown in ubiquity and threats have evolved, especially as the pandemic transferred many types of business online.

Read more: Behavioral Analytics Helps FinTechs Separate the Fraudsters From the Friendlies

PYMNTS wrote recently that the average American has experienced around seven data breaches since 2004, according to a recent survey. This has seen companies using more and more authentication checks, trying to make sure customers are who they say they are.

However, that can also add more cumbersome elements to the user experience. Behavioral analytics can help minimize friction, pinpointing places that were too slow for customers and allowing companies to improve the experience. This can also be done without compromising cybersecurity.