The recent data breach that has impacted several fintech companies has taken a strange turn. Evolve Bank & Trust, the victim of the breach, announced last week that it had been hacked, and the stolen data was posted on the dark web. However, Evolve has now sent a cease and desist letter to Jason Mikula, the writer of Fintech Business Weekly, a respected industry publication that has been covering the situation.
The letter from Evolve Bank & Trust instructed Mikula not to share any files from the dark web with fintech companies that were allegedly affected by the breach. Mikula confirmed that he had not been sharing any files but had offered to do so and had seen some of the stolen data. Journalists often review hacked information to verify the occurrence of a breach and what data was compromised.
The issue at the heart of the problem is that not all affected fintechs have received comprehensive details about the stolen information. Mikula’s industry sources revealed that some fintechs had not received confirmation from Evolve about the breach and were unaware of what data was compromised. This lack of information prevented them from taking appropriate measures to mitigate risks and inform their users.
Mikula believed that sharing the files would allow fintech companies to confirm the breach and understand which data fields were included. It would also enable them to identify specific customers who had been impacted. In his newsletter, Mikula shared information about the fintech companies that were confirmed to be involved in the breach, earning him praise from users like Parrot Capital, who commended his efforts in providing customer service to those affected by the Evolve Bank breach.
Despite his responsible reporting on the situation, Mikula recently received a cease and desist letter from Evolve. He stated that he would continue reporting on the matter. TechCrunch has reached out to Evolve for comment regarding the situation.
While Evolve was dealing with their legal actions against Mikula, a group of senators publicly urged Synapse, a troubled fintech company, and its partners, including Evolve, to restore customers’ access to their money. Synapse filed for Chapter 7 bankruptcy in May, resulting in frozen accounts and inaccessible funds for customers. The senators implicated both the partners and investors of Synapse for any missing customer funds, alleging that $65 million to $95 million worth of funds were missing. However, all parties involved, including Evolve, deny responsibility and are pointing fingers at others.
The senators’ letter was addressed to W. Scott Stafford, president and CEO of Evolve Bank & Trust, as well as major investors in Synapse and the company’s principal bank and fintech partners.
Overall, the situation surrounding the data breach and its aftermath has raised concerns about the lack of transparency and communication between affected companies and their customers. Fintech companies must prioritize providing timely and comprehensive information to ensure the mitigation of risks and the protection of their users.