Data Violation Case to Visa's Fintech Company Plaid

Data Violation Case to Visa's Fintech Company Plaid

A data breach lawsuit has been filed against Plaid, Visa's fintech company. Fintech company Plaid, which was purchased for $ 5.3 billion by Visa, was reported to be sued for a data breach. In the lawsuit filed in California, there is an accusation that the company is selling sensitive information. Visa bought the Silicon Valley venture Plaid in January 2020 for $ 5.3 billion. The lawsuit filed against Plaid stated that the financial information of millions of users was violated. In a lawsuit filed on June 25 in California, plaintiffs claim Plaid violated their privacy and data protections by accumulating financial transactions and earning money from millions of users. Complaints about this issue claimed that the company had collected this data with “data plumbing” services such as Venmo, Stripe, Square’s Cash App and Robinhood. As of December, Plaid announced that one out of every four people who have a bank account in the USA is connected to the fintech company through an application. The company's early investors included venture arms of Visa, Mastercard, Citi, Goldman Sachs and American Express.