Fintech Frenzy as Affirm and Others Emerge as Victims in Evolve Breach

The recent attack on one of the largest financial services providers has led to a problem for many companies that work with the provider, two of which have already alluded to possible negative implications for customer data due to the attack. There has been a strong rumour that the LockBit group successfully hacked the US Federal Reserve earlier last week, which has caused the group to receive some undue attention. A breach had also occurred at the far lesser Evolve Bank & Trust, a far less serious breach. Memphis-based Evolve has released a statement regarding the incident. 

According to the statement, the attack was triggered by an Evolve employee clicking on a malicious phishing link sent to him in late May. Even though the attackers did not access most of the cash that customers had in their accounts, the hackers had access to and downloaded their personal information from databases and a file share. Furthermore, the company encrypted some of its data, but since backups were made, the company had to deal with limited loss of data and impact on its operations. Several days ago, the Federal Reserve Board announced that it would enforce the anti-money laundering, risk management, and consumer compliance programs of Evolve Bank & Trust. It accused the company of deficiencies in these areas, as well as other areas. 

In a statement the Federal Reserve published in February 2023, the Fed noted that examinations conducted in 2023 found that Evolve had a risk-management pro

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