Paidwork LLC: Paidwork Sued Over Data Incident Affecting 23 Million People

Paidwork Faces Class-Action Lawsuit Over 2026 Data Breach Affecting 23 Million Users

A proposed class-action lawsuit has been filed against gig-economy platform Paidwork LLC, alleging the company failed to safeguard the personal data of 23 million users following a March 2026 data breach. The incident came to light in April 2026, when cybercriminals infiltrated Paidwork’s systems and publicly posted the compromised database online.

The lawsuit, filed by plaintiff Alexis Barnes in the U.S. District Court for the Eastern District of California, claims Paidwork’s platform where users complete online tasks for payment via PayPal or bank transfers required sensitive information, including names, addresses, phone numbers, dates of birth, and bank account details. The breach exposed this data, raising concerns over potential identity theft and financial fraud.

Paidwork has not yet publicly responded to the allegations. The case highlights growing scrutiny over data security practices in the gig economy, where platforms often handle vast amounts of user information. The outcome could set precedents for accountability in future breaches.

Source: https://news.bloomberglaw.com/business-and-practice/paidwork-sued-over-data-incident-affecting-23-million-people

PaidWork cybersecurity rating report: https://www.rankiteo.com/company/paidwork

"id": "PAI1785955476",
"linkid": "paidwork",
"type": "Breach",
"date": "4/2026",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"

{'affected_entities': [{'customers_affected': '23000000',
                        'industry': 'Gig Economy',
                        'location': 'U.S.',
                        'name': 'Paidwork LLC',
                        'type': 'Company'}],
 'data_breach': {'data_exfiltration': 'Publicly posted online',
                 'number_of_records_exposed': '23000000',
                 'personally_identifiable_information': 'Yes',
                 'sensitivity_of_data': 'High',
                 'type_of_data_compromised': ['Names',
                                              'Addresses',
                                              'Phone numbers',
                                              'Dates of birth',
                                              'Bank account details']},
 'date_detected': '2026-04',
 'date_publicly_disclosed': '2026-04',
 'description': 'A proposed class-action lawsuit has been filed against '
                'gig-economy platform Paidwork LLC, alleging the company '
                'failed to safeguard the personal data of 23 million users '
                'following a March 2026 data breach. The incident came to '
                'light in April 2026, when cybercriminals infiltrated '
                'Paidwork’s systems and publicly posted the compromised '
                'database online. The breach exposed sensitive information, '
                'raising concerns over potential identity theft and financial '
                'fraud.',
 'impact': {'brand_reputation_impact': 'Growing scrutiny over data security '
                                       'practices',
            'data_compromised': 'Names, addresses, phone numbers, dates of '
                                'birth, bank account details',
            'identity_theft_risk': 'High',
            'legal_liabilities': 'Class-action lawsuit filed',
            'payment_information_risk': 'High'},
 'references': [{'source': 'Class-action lawsuit filing'}],
 'regulatory_compliance': {'legal_actions': 'Class-action lawsuit filed in '
                                            'U.S. District Court for the '
                                            'Eastern District of California'},
 'threat_actor': 'Cybercriminals',
 'title': 'Paidwork Faces Class-Action Lawsuit Over 2026 Data Breach Affecting '
          '23 Million Users',
 'type': 'Data Breach'}