Canadians using Wealthsimple may soon become part of a proposed class-action lawsuit against the online investment service. The lawsuit, filed by Slater Vecchio LLP, alleges that a recent data breach compromised sensitive personal and financial information of some customers.
Allegations of Data Breach
The legal action follows a cyberattack detected by Wealthsimple on August 30. The company informed its clients about the breach on September 5. They stated that the issue was contained within hours. However, a trusted third-party software used by Wealthsimple had been compromised.
Impact on Wealthsimple Customers
According to a notice released by Wealthsimple, personal data belonging to less than one percent of its over three million Canadian clients was accessed without authorization. This included:
- Contact details
- Government IDs
- Account numbers
- IP addresses
- Social Insurance Numbers
- Dates of birth
The good news was that no passwords or funds were accessed during the security incident. A Wealthsimple spokesperson explained the delay in notifying clients was necessary to contain the incident and fulfill regulatory obligations.
Wealthsimple’s Response
In an email statement, Wealthsimple said they strongly believe the claims in the proposed class action lack merit. The company pledged to defend itself vigorously. They emphasized that immediate action was taken once the breach was discovered.
Wealthsimple provided affected customers with complimentary credit monitoring, dark web monitoring, identity theft protection, and insurance.
Class-Action Lawsuit Details
The class-action lawsuit represents all Canadians whose information was compromised in the breach. It also includes a subclass for those who faced direct consequences, such as financial losses or identity theft linked to the cyberattack.
Anthony Vecchio, partner at Slater Vecchio LLP, highlighted the importance of trust in financial institutions. He remarked, “When that trust is broken, individuals are left vulnerable to fraud and identity theft.” The lawsuit aims to ensure that financial organizations prioritize data security.
How to Join the Lawsuit
If you believe you were affected by the data breach, you can join the class action. Interested individuals should provide their name, contact information, and indicate whether they received a breach notification from Wealthsimple on the class action website.
