Recently, Pyramid Consulting Group, LLC (“PCG”) confirmed that the company experienced a data breach after an unauthorized party gained access to the company’s computer network and the sensitive consumer data contained on the network. According to the PCG, the breach resulted in the names and Social Security numbers of as many as 3,264 individuals being compromised. On June 3, 2022, PCG filed official notice of the breach and sent out data breach letters to all affected parties.

If you received a data breach notification, it is essential you understand what is at risk and what you can do about it. To learn more about how to protect yourself from becoming a victim of fraud or identity theft and what your legal options are in the wake of the Pyramid Consulting Group data breach, please see our recent piece on the topic here.

What We Know About the Pyramid Consulting Group Data Breach

News of the Pyramid Group Consulting data breach only recently broke, so details are still sparse. Most of what we know about the PCG breach comes from an official filing by the company with various state government agencies. Based on this information, we know that PCG recently detected “access to information within secure documents that may affect the privacy of certain information provided” to PCG. In other words, it would seem that an unauthorized party gained access to the PCG systems containing the sensitive information of consumers.

Upon discovering that sensitive consumer data was accessible to an unauthorized party, Pyramid Consulting Group then reviewed the affected files to determine exactly what information was compromised. While the breached information varies depending on the individual, it may include your name and Social Security number.

On June 3, 2022, Pyramid Consulting Group mailed out data breach letters to all individuals whose personal data was compromised as a result of the recent incident.

More Information About Pyramid Consulting Group, LLC

Pyramid Consulting Group, LLC is a recruiting agency located in New York, New York. The company specializes in recruiting in the fashion, e-commerce and retail industries but also serves other industries as well, such as marketing, administrative, finance, hospitality and food and beverage. Pyramid Consulting Group has more than 30 employees and brings in approximately $16 million in annual sales.

Are Businesses Financially Liable for Harms Suffered by Data Breach Victims?

While companies are not always liable following a data breach, yes, as a general rule, data breach victims may be able to bring a data breach lawsuit against a company that negligently stored their information. Typically, given the number of victims involved in a breach, a few victims start the process by filing a data breach class action lawsuit. From that point, anyone else impacted by the breach can join the lawsuit. A class action lawsuit is a way in which multiple victims who suffered similar harms can band together to hold a company responsible.

Data breach class action lawsuits can proceed under various theories; for example, a company’s mishandling of consumer information may lead to a breach of contract claim. However, most are brought under the legal concept of negligence. Thus, if a company’s negligence contributed to the breach, the company may be liable for any resulting harm. In more recent years, some courts have held that a victim doesn’t necessarily need to fall victim to identity theft or fraud to pursue a claim. These courts held that the increased risk of future fraud or identity theft is enough to bring a claim.

Under existing data breach laws, are several ways a company’s negligence can lead to a data breach. Below are just a few examples:

• A company employee does not follow the appropriate procedures when handling consumer data;

• A business fails to implement an adequate data security system or relies on an outdated system;

• A company inadvertently transmits consumer information to an unauthorized party; or

• An employee provides their login credential or consumer information to an unauthorized party following a phishing attempt.

Of course, these are just a few examples of negligence in the data breach context; there are many others.

Notably, at this point, there is no indication suggesting that Pyramid Consulting Group was negligent; however, the investigation into the breach is still in process. If evidence emerges that Pyramid Consulting Group failed to employ the necessary safeguards to protect consumer data or was otherwise negligent, the company may be liable through a data breach class action lawsuit.