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US banking app Dave reports data breach

Dave, a Los Angeles-based banking app, reports that a data breach at Waydev, one of its former third-party providers, has resulted in a large amount of personal data being stolen. Some reports suggest that more than 7.5 million customer records were being hawked for sale on the dark web for a matter of weeks. The data included in the leak consists of names, emails, birth dates, physical addresses, and phone numbers. It has also been suggested that some user passwords (stored in hashed form using the bcrypt algorithm) may be compromised.

However, Dave said there is ‘no evidence that any unauthorised actions were taken with any accounts or that any user has experienced any financial loss’. The company added that it is working with law enforcement agencies, including the FBI, on claims by a malicious party that it has ‘cracked’ some of these passwords and is attempting to sell Dave customer data.

Customers are being notified and a mandatory reset of all customer passwords is underway. Dave said it has retained cybersecurity consultancy CrowdStrike to assist.

Commenting on the breach at Dave, Mark Crichton, Senior Director of Security Product Management at cybersecurity specialist OneSpan, said: “Opening up data to third-parties will always increase the chances of a cyber-attack, however banks should make sure they have the technology in place that allows them to better detect the types of fraud made possible with compromised data. For example, by implementing risk analytics banks can analyse transactions in real time, alongside device, geographical and behavioural data, to build up a profile of normal activity. Using this baseline, the banks can then detect potentially fraudulent activity.

“Banks should also make sure they’re only working with third-parties that have appropriate security infrastructure in place so mitigate the chance of any data being stolen.”

Dave was launched as a challenger bank in the US in 2016 and is insured by the Federal Deposit Insurance Corporation (FDIC) through a partner bank, Evolve Bank and Trust. Its banking app was launched in 2019. Last year Dave was valued at a total of $1 billion following its latest funding round.

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