Breach, Supply chain

Evolve Bank breach takes toll on fintech firms

Virtual bank and digital banking

Several financial technology firms have begun looking into the potential impact of the breach of U.S. banking-as-a-service provider Evolve Bank & TrustTechCrunch reports.

Data compromise has already been confirmed by fintech startup Mercury, which disclosed the hack of certain account numbers, business owner names, emails, and deposit balances as a result of the Evolve intrusion. Another Evolve partner, Affirm, reported the possible exfiltration of its customers' data but insisted that its card and Money Accounts could be safely used amid its ongoing investigation into the matter. Similar investigations have been launched by EarnIn, Melio, and Marqueta, with the latter noting an ongoing coordination with Evolve. "Our customers affected by this incident have been notified, and we are working closely with Evolve to understand their remediation effort and how our mutual customers may be impacted," said Marqueta spokesperson Kelly Kraft. Such a development comes weeks after Evolve was urged by the Federal Reserve to strengthen its risk management programs following the discovery of security gaps in its banking practices.

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