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Verify My Notice LetterThis case file references a public filing made with the state filing in SC. This website is not affiliated with, endorsed by, or operated by any state government agency.
Prosper Marketplace, Inc. was the subject of a data breach notification filed with the SC Attorney General. The AG filing was recorded on December 11, 2025.
From the AG filing description
Prosper Marketplace, Inc. operates as a prominent online peer-to-peer lending platform, connecting individual borrowers with institutional and retail investors. Because of its core financial services model, the company routinely collects, processes, and stores vast quantities of highly sensitive personal and financial data. Users seeking personal loans, debt consolidation, or alternative investment opportunities must submit extensive financial disclosures, credit histories, banking details, and government-issued identification to facilitate underwriting and account creation. Consequently, Prosper holds a repository of deeply confidential information that makes it a prime target for malicious actors seeking to monetize stolen consumer data. The security incident reported to the South Carolina Attorney General in 2025 highlights the persistent vulnerabilities facing digital financial service providers. While specific technical forensics continue to emerge, breaches affecting fintech platforms typically involve sophisticated cyberattacks such as unauthorized access to cloud-hosted databases, credential stuffing attacks, or third-party vendor compromises. In the financial sector, threat actors aggressively probe digital infrastructure to bypass perimeter security controls, deploy ransomware, or exfiltrate databases containing unencrypted consumer files. These incidents underscore the critical need for rigorous, multi-layered cybersecurity protocols across all operational touchpoints. The exposure resulting from the Prosper Marketplace incident places affected consumers at severe risk of identity theft, financial fraud, and account takeover. The compromised datasets likely include full names, Social Security numbers, dates of birth, bank account and routing numbers, credit scores, and detailed loan or transaction histories. When Social Security numbers and financial account details are compromised together, cybercriminals can easily open fraudulent credit lines, intercept direct deposits, drain existing bank accounts, and file fraudulent tax returns. The financial and emotional toll on victims attempting to restore their credit profiles and secure their financial identities can persist for years. As a financial intermediary, Prosper Marketplace, Inc. is bound by stringent legal and regulatory obligations to safeguard consumer data under the Gramm-Leach-Bliley Act (GLBA), state consumer protection statutes, and prevailing industry standards such as the Payment Card Industry Data Security Standard (PCI-DSS). These frameworks require financial institutions to maintain comprehensive administrative, technical, and physical safeguards to protect non-public personal information. The occurrence of a data breach of this magnitude strongly suggests a failure in these mandatory security obligations, potentially revealing inadequate encryption practices, delayed patch management, or insufficient network monitoring. Receiving a data breach notification letter from Prosper Marketplace, Inc. serves as formal legal acknowledgment that your confidential information was compromised due to corporate negligence. Legally, this notification establishes the necessary standing for affected individuals to participate in class action litigation aimed at holding the company accountable for failing to protect their data. Crucially, victims do not need to prove that they have already suffered direct financial loss or identity theft to join a class action; the increased risk of future harm is sufficient under the law. Our firm handles these data breach cases on a contingency fee basis, meaning you pay nothing out of pocket and owe no legal fees unless we successfully recover compensation on your behalf.
Under the South Carolina data breach notification law, you may have a legal claim against Prosper Marketplace, Inc. if any of the following apply:
Based on the data types reported in this filing:
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.
Common categories of compensation in data breach class actions
Courts recognize that the time spent monitoring accounts, placing credit freezes, and dealing with the aftermath of a breach has real economic value. This category of damages is recoverable even without direct financial loss.
Professional credit monitoring services cost $10–$40 per month. Identity theft restoration services, if needed, can cost hundreds of hours and thousands of dollars. Courts have awarded these costs as direct damages in SSN breach cases.
Direct financial losses resulting from the breach — unauthorized charges, fraudulent transfers, or fees incurred through fraud — are recoverable as compensatory damages. Banks may reverse some charges; a class action recovers the remainder and associated costs.
Data breach victims regularly report anxiety, loss of sleep, and ongoing fear of identity theft. These non-economic harms are cognizable injuries in data breach litigation, particularly in cases involving SSN or medical record exposure.
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 South Carolina data breach notification law 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.
Banks may reverse fraudulent charges, but they are not obligated to compensate you for time lost, stress, or indirect damages. A class action claim against the breached company can recover those additional categories of harm.
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 Prosper Marketplace, Inc. 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 Prosper Marketplace, Inc. during the relevant period, you may still qualify even without receiving a letter. A free eligibility review can confirm your status.
Applicable State Law
This breach was reported under the South Carolina data breach notification law, which mandates notification and establishes your right to seek damages.
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