Evolve Bank Targeted by LockBit Ransomware Gang

Evolve Bank & Trust confirmed that a cyberattack by the notorious LockBit ransomware gang led to a significant data breach, impacting both its customers and fintech partners. The Arkansas-based bank disclosed on Wednesday that hackers had stolen and posted customer information on the dark web.

The bank is currently investigating the breach, which it attributes to a "known cybercriminal organization," but it assured customers that the incident has been contained. "Based on what our investigation has found and what we know at this time, we are confident this incident has been contained and there is no ongoing threat," says the official Evolve Bank statement.

The leaked data includes personal identification information such as names, Social Security numbers, dates of birth, and account details, though Evolve Retail Banking customers' debit cards and digital banking credentials appear unaffected. To mitigate the damage, the bank is offering free credit monitoring services to the victims and issuing new account numbers to some impacted customers.

This incident has raised concerns among Evolve's fintech partners, with companies like Affirm, EarnIn, Marqeta, and Melio expressing their awareness and commitment to assessing the breach's impact on their clients. Speaking to TechCrunch, Affirm's spokesperson Matt Gross stated that "[the] company is investigating the incident and will communicate directly with any impacted consumers as we learn more."

LockBit, which had previously claimed to have breached the U.S. Federal Reserve, is responsible for this attack. Evolve Bank's spokesperson emphasized that, despite the breach, the hackers' claims of accessing Federal Reserve data were unfounded and that the data belonged to Evolve Bank & Trust.

Evolve, known for its partnerships with prominent fintech companies like Stripe, has been under scrutiny for its risk management practices in the wake of the news. Reuters reported that the breach also affected the data of some of the bank’s partners, creating a ripple effect among the startups relying on Evolve's services. One such company, Mercury, noted that the breach had impacted its own records, including account numbers, deposit balances, and business owner names.

This isn’t the first time that LockBit has targeted a US organization. The gang has a history of extorting millions in ransom all across the globe, and the Evolve breach is just the latest incident in the ransomware gang’s apparent resurgence.