700Credit, a U.S.-based fintech company that provides credit reporting, identity verification, and compliance services to vehicle dealerships, has disclosed a major data breach affecting more than 5.8 million individuals. The incident stemmed from a compromise of one of 700Credit’s integration partners in July, during which a threat actor discovered and abused an exposed API used to retrieve customer information. Crucially, the partner failed to notify 700Credit of the breach, allowing the attacker to continue exploiting the vulnerability unnoticed for months. Suspicious activity was finally detected by 700Credit on October 25, prompting an internal investigation supported by third-party digital forensics experts. The investigation revealed that unauthorized copying of customer records occurred through a web application used by dealership clients. According to 700Credit management, the attacker exploited a security flaw in the API, specifically the failure to validate consumer reference IDs against the original requester. This weakness enabled the threat actor to exfiltrate approximately 20% of consumer data over a prolonged period, spanning from May to October, before the exposed API was shut down. The compromised information includes highly sensitive personal data such as full names, physical addresses, dates of birth, and Social Security numbers (SSNs). The prolonged exposure and sensitivity of the data significantly increase the risk of identity theft and financial fraud for affected individuals. Despite the scale of the incident, there is currently no evidence of ransomware involvement or public claims of responsibility by known cybercriminal groups. 700Credit plays a critical role in the U.S. automotive ecosystem, serving more than 23,000 automotive, RV, powersports, and marine dealerships nationwide. To reduce the regulatory burden on its clients, the company filed a consolidated breach notification with the Federal Trade Commission (FTC) and relevant authorities on behalf of itself and all impacted dealerships. It also notified the National Automobile Dealers Association (NADA) to raise sector-wide awareness. Affected individuals are being offered 12 months of free identity protection and credit monitoring through TransUnion, with guidance to closely monitor accounts and consider placing security freezes. The incident highlights systemic risks tied to third-party integrations and API security failures within the financial services and automotive retail supply chain.
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