Educational Computer Systems Inc.: Educational Computer Systems’ $6.5 Million Breach Deal Gets Nod

Educational Computer Systems Inc. to Pay $6.5 Million in 2023 Data Breach Settlement

Educational Computer Systems Inc. (ECSI) has agreed to a $6.5 million settlement to resolve a proposed class-action lawsuit over a 2023 data breach that exposed the personal and financial information of nearly 2.6 million individuals. The settlement, granted preliminary approval by the U.S. District Court for the Western District of Pennsylvania, stems from allegations that ECSI failed to adequately protect sensitive data.

Under the terms of the agreement, affected class members may seek reimbursement of up to $5,000 for documented out-of-pocket expenses related to the breach or opt for a $100 cash payment. The case, overseen by Judge Christy Criswell Wiegand, highlights the financial and legal consequences of data security failures in the education sector.

The breach underscores the growing risks of cyber incidents involving financial and personal data, particularly for organizations handling large-scale sensitive information. The settlement reflects the increasing scrutiny and accountability faced by companies in the aftermath of data exposures.

Source: https://news.bloombergtax.com/daily-tax-report-international/educational-computer-systems-6-5-million-breach-deal-gets-nod

ECSI, A Global Payments Company cybersecurity rating report: https://www.rankiteo.com/company/educational-computer-systems-inc

"id": "EDU1786070092",
"linkid": "educational-computer-systems-inc",
"type": "Breach",
"date": "1/2023",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"

{'affected_entities': [{'customers_affected': '2.6 million individuals',
                        'industry': 'Education',
                        'name': 'Educational Computer Systems Inc. (ECSI)',
                        'type': 'Organization'}],
 'customer_advisories': 'Affected class members may seek reimbursement of up '
                        'to $5,000 for documented out-of-pocket expenses '
                        'related to the breach or opt for a $100 cash payment.',
 'data_breach': {'number_of_records_exposed': '2.6 million',
                 'personally_identifiable_information': 'Yes',
                 'sensitivity_of_data': 'High',
                 'type_of_data_compromised': ['Personal information',
                                              'Financial information']},
 'date_publicly_disclosed': '2023',
 'description': 'Educational Computer Systems Inc. (ECSI) has agreed to a $6.5 '
                'million settlement to resolve a proposed class-action lawsuit '
                'over a 2023 data breach that exposed the personal and '
                'financial information of nearly 2.6 million individuals. The '
                'settlement stems from allegations that ECSI failed to '
                'adequately protect sensitive data.',
 'impact': {'data_compromised': 'Personal and financial information',
            'financial_loss': '$6.5 million',
            'legal_liabilities': 'Class-action lawsuit'},
 'investigation_status': 'Settled',
 'post_incident_analysis': {'root_causes': 'Failure to adequately protect '
                                           'sensitive data'},
 'references': [{'source': 'U.S. District Court for the Western District of '
                           'Pennsylvania'}],
 'regulatory_compliance': {'legal_actions': 'Class-action lawsuit'},
 'title': 'ECSI 2023 Data Breach Settlement',
 'type': 'Data Breach'}