In December, Jack Dorsey’s former Block payment company employee downloaded data from about 8.2 million U.S. users of the Cash App. The firm disclosed this in a report to the SEC.
The security breach Block (formerly Square) discovered “recently”.
“Although the employee had regular access to this data as part of his past job duties, in this case it was obtained without authorization after termination”, the report said.
The stolen information includes full names and brokerage account numbers and, in some cases, the value and structure of portfolios.
There are no logins, passwords, social security numbers, addresses or other personal information in the data, Block assured.
The company said it would warn all 8.2 million former and current customers about the leak. The app has about 42 million users in the U.S. and Europe, according to a quarterly report.
Block will also contact law enforcement and notify regulators.
“It is difficult to predict the future costs associated with this incident. While the company has not yet completed its investigation, based on a preliminary assessment and the information currently available, Block does not currently believe the incident will have a material impact on its operations or financial results”, the firm said.
The company’s stock price fell from about $145 to about $125 – nearly 14% – following the report of the data leak. As of this writing, Premarket estimates the value of the securities at $129.
In the fourth quarter of 2021, Block generated $1.96 billion in revenue from bitcoin sales through the Cash App.
In March, the company disclosed some technical details of the cryptocurrency wallet under development