Reported to the IL Attorney General on October 29, 2025.
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Check My Rights →COALESCE, LLC DBA BENEFITELECT was the subject of a data breach notification filed with the IL Attorney General. The AG filing was recorded on October 29, 2025.
Coalesce, LLC, operating under the trade name BenefitElect, functions as a specialized third-party administrator and technology platform provider managing employee benefits, human resources administration, and insurance enrollment services. In its operational capacity, BenefitElect acts as a central repository for vast quantities of highly sensitive personal and financial data, interfacing directly with employers, insurance carriers, and plan participants. Because the company processes health insurance elections, flexible spending accounts, retirement plan details, and personnel records, it maintains extensive personal identifiable information and protected health information for thousands of workers and their dependents. This makes Coalesce, LLC dba BenefitElect a high-value target for cybercriminals seeking to harvest lucrative personal data for illicit exploitation. In 2025, Coalesce, LLC dba BenefitElect reported a significant data security incident to the Illinois Attorney General, revealing that unauthorized actors had gained access to its network and internal data systems. Incidents involving benefits administration and HR technology platforms typically stem from compromised credentials, sophisticated phishing campaigns directed at administrative personnel, or vulnerabilities within third-party software and legacy network infrastructure. When an organization of this type suffers a breach, threat actors frequently bypass perimeter defenses to infiltrate centralized databases where employee onboarding files, enrollment forms, and benefits eligibility records are stored, remaining undetected within the system long enough to exfiltrate vast troves of confidential documents. The data compromised in the BenefitElect security incident exposes victims to severe, multi-faceted risks. Typical exposures in benefit administration breaches involve the combination of full names, dates of birth, Social Security numbers, home addresses, health insurance policy numbers, and detailed payroll or compensation records. When Social Security numbers and dates of birth are paired with employment and insurance details, cybercriminals can utilize this information to commit comprehensive identity theft, open fraudulent lines of credit, file unauthorized tax returns, and intercept government or employment benefits. Furthermore, the inclusion of health insurance and medical election data creates distinct vulnerabilities to medical fraud, where bad actors obtain healthcare services or prescription drugs utilizing the victim's compromised insurance identifiers. As a custodian of sensitive employee and participant data, Coalesce, LLC dba BenefitElect was bound by stringent legal and regulatory obligations to secure its digital environment. Under state data protection statutes, the Illinois Personal Information Protection Act (PIPA), and applicable federal standards including the Health Insurance Portability and Accountability Act (HIPAA) when handling protected health information, the company had a clear duty to implement robust administrative, physical, and technical safeguards. These legal mandates require continuous network monitoring, data encryption at rest and in transit, multi-factor authentication, and regular vulnerability assessments. The occurrence of a successful breach strongly indicates a failure to maintain these foundational security standards, leaving confidential files vulnerable to unauthorized intrusion. Receiving a data breach notification letter from Coalesce, LLC dba BenefitElect is an official acknowledgment that your private information was compromised due to inadequate data security practices. Legally, this notice establishes your standing to participate in a class action lawsuit aimed at holding the company accountable for its failure to protect your sensitive records. Importantly, victims do not need to prove that financial loss or identity theft has already occurred to seek legal recourse; the increased and imminent risk of future harm is sufficient. Our law firm is actively investigating potential class action claims on behalf of individuals affected by the BenefitElect data breach, and we handle these matters on a strict contingency fee basis, meaning you pay nothing out of pocket unless we successfully recover compensation for you.
Based on the data types reported in this filing, affected individuals face the following specific risks:
Your SSN is the master key to your identity. Once exposed, criminals can open new lines of credit, take out loans, or file taxes in your name.
Combined with a name and other leaked data, date of birth helps criminals pass identity verification questions at banks and government agencies.
Under the Illinois Personal Information Protection Act (PIPA), you may have a legal claim against COALESCE, LLC DBA BENEFITELECT if any of the following apply:
Applicable law: This breach was reported under the Illinois Personal Information Protection Act (PIPA), which establishes your right to seek damages from COALESCE, LLC DBA BENEFITELECT.
The hours spent responding to a data breach — canceling accounts, contacting credit bureaus, updating passwords, and investigating fraud — represent compensable economic harm in data breach litigation.
Once your SSN is exposed, protection becomes an ongoing expense. Plaintiffs in data breach settlements have recovered costs for credit freezes, identity protection subscriptions, and time spent dealing with fraudulent accounts — sometimes covering multiple years of exposure.
HIPAA violations carry civil penalties between $100 and $50,000 per violation. Where a healthcare organization's negligence led to the exposure of protected health information, class members may recover statutory damages in addition to actual losses.
Several state data breach laws provide for statutory minimum damages — fixed amounts recoverable per affected individual regardless of actual loss. These provisions exist specifically to make legal action viable for victims who have not yet experienced direct harm.
Note: an attorney general breach filing does not by itself establish a settlement fund, a payment amount, or a claim deadline. If an official settlement notice is later issued, rely on that notice for payment details and deadlines.
No. Under Illinois Personal Information Protection Act (PIPA) and federal law, the unauthorized exposure of your personal data — regardless of whether it has been actively misused — can be sufficient grounds for a claim. The breach itself is the injury.
Nothing. The Law Office of David S. Harris handles data breach cases on contingency — you pay zero upfront and owe nothing unless compensation is recovered.
Immediately place a free credit freeze at all three bureaus (Equifax, Experian, TransUnion). A freeze blocks new accounts from being opened in your name. Then file a complaint with the FTC at IdentityTheft.gov and contact our office — SSN exposure is one of the most serious breach types.
If COALESCE, LLC DBA BENEFITELECT is a covered healthcare entity or business associate under HIPAA, affected patients have additional rights — including the right to an HHS complaint. These HIPAA violations also strengthen civil damages claims. Consult an attorney to understand your full remedies.
Statutes of limitations for data breach claims vary by state but typically run 2–4 years. Depending on when you learned of the breach, you may still have time. Contact our office for a free eligibility review — there is no cost to find out.
Accepting free credit monitoring from COALESCE, LLC DBA BENEFITELECT does not waive your right to pursue legal action unless you signed a specific release waiving claims. In most cases, victims who accepted monitoring can still file.
Not necessarily. Many data breach victims are never notified directly. If your personal information was held by COALESCE, LLC DBA BENEFITELECT during the relevant period, you may still qualify even without receiving a letter. A free eligibility review can confirm your status.
Received a notification letter from COALESCE, LLC DBA BENEFITELECT?
Read our dedicated guide — what the letter means and exactly what to do.
If you were affected by the COALESCE, LLC DBA BENEFITELECT data breach, you may be entitled to compensation. Submit your information below for a free attorney review — no obligation, no upfront cost.
Source: State Attorney General filing, IL
View Official AG Filing →COALESCE, LLC DBA BENEFITELECT breach?
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