Flagstar Bank Data Breach Lawsuit

A major data breach involving Flagstar Bank’s third-party vendor, Fiserv, exposed the personal information of over 838,000 individuals. The breach was tied to a vulnerability in the MOVEit file transfer software.

Flagstar Bank’s Data Breach Investigation

Flagstar Bank has confirmed that a data breach occurred through one of its vendors—Fiserv—due to a vulnerability in MOVEit Transfer, a widely used secure file transfer software. The breach, which took place between May 27 and May 31, 2023, led to the unauthorized access of files containing sensitive customer information, including names and Social Security numbers.

Importantly, the breach did not involve Flagstar Bank’s internal systems. However, because Fiserv was responsible for key banking services, including payment processing and mobile banking, the compromised data included customer information from Flagstar and its related institutions.

The breach came to light shortly after the MOVEit vulnerability became known in the cybersecurity community. Fiserv and its service provider immediately launched a forensic investigation, patched the vulnerability, and reviewed all potentially impacted systems.

Despite the breach originating outside Flagstar Bank, the consequences are severe. Over 838,000 people, including 177 Maine residents, had their sensitive data exposed. Flagstar has since arranged for free identity protection services through Kroll, including credit monitoring and fraud consultation for two years.

This incident highlights the risks companies face through third-party vendors—and why consumers deserve transparency, protection, and accountability when their private data is compromised. If you’ve been affected, you may have legal options to pursue compensation for potential harm.

When Did This Breach Occur?

The unauthorized access occurred between May 27, 2023, and May 31, 2023. The breach was discovered on or around June 3, 2023.

What Information Was Breached?

• Full name
• Social Security number

What You Can Do

If you’ve received a data breach notification from Flagstar Bank regarding this incident, take the following steps to protect yourself:

• Enroll in the free identity monitoring services provided by Kroll for two years, which include credit monitoring, fraud consultation, and identity theft restoration.
• Check your credit reports regularly at AnnualCreditReport.com for any unfamiliar activity.
• Place a fraud alert or credit freeze with Equifax, Experian, and TransUnion to reduce the risk of fraudulent accounts being opened in your name.
• Monitor all financial accounts for suspicious transactions.
• Report any suspected identity theft to the FTC at IdentityTheft.gov.

Flagstar Bank customers deserve answers and remedies. At Class Action U, we’re here to help you evaluate your legal options and take action if your rights have been violated.

File a Data Breach Lawsuit Against Flagstar Bank