Alleged 700Credit Breach Exposes Millions of Sensitive Auto Records

Imagine discovering your customers’ most sensitive information is being sold on the dark web. And you’re finding out not from your service provider, but from security researchers tracking criminal marketplaces. That’s the nightmare scenario auto dealers using 700Credit are facing right now.

A recent dark web listing claims the auto credit service provider suffered a catastrophic data breach in October. The alleged incident exposed more than eight million customer records. This isn’t just names and emails. We’re talking about the crown jewels of personal data.

What’s Being Sold on the Dark Web

According to databreach.io, a dark web monitoring service, threat actors are actively selling the stolen information. The timing is particularly concerning. Security researchers report that negotiations between the hackers and 700Credit broke down. That’s when the data hit the underground markets.

The dark web post includes a sample of 100 records. These samples show data fields that match exactly what you’d expect from consumer identity and credit verification services. The exposed information reportedly includes:

• Full names and Social Security numbers
• Dates of birth and residential addresses
• Employment information for some records
• Additional identity verification data used in credit-related services

700Credit has not publicly confirmed the breach. However, at least one class action lawsuit has already been filed, according to ComplyAuto. The company has also reportedly begun communicating with dealers about the incident and taking steps to notify affected consumers.

Dealers Face Urgent Legal Deadlines

If you use 700Credit services, you’re potentially on the hook regardless of whether the breach happened at your dealership or with your vendor. The legal framework is clear. Dealers are generally responsible for breaches involving their customer data, even when the incident occurs at a service provider.

This mirrors the legal considerations from the CDK breach in 2024. You have noticed the requirements. You need to contact your insurance carrier immediately. Your legal counsel should be looped in right away. Time is absolutely of the essence as the majority of federal and state laws demand consumer notification within a 30-day timeframe following a breach. The countdown has already begun.

So, this latest auto industry data breach is part of a worrying trend of automotive sector data becoming dark web commodities. Only about a couple of days ago, hackers claimed to have put a massive trove of Mercedes-Benz USA customer and legal data up for sale in a similar fashion, underscoring how the entire industry’s data is now a prime target.

Next Steps – What Dealers Must Do

The first move should be contacting your 700Credit representative immediately. As a dealer, specific answers will be needed for certain critical questions. Was your customer data actually exposed? If so, how many of your customer records were affected? Which specific individuals need to be notified? What states do they live in?

You also need clarity on 700Credit’s notification plan. Will they notify affected consumers on your behalf or in their own name? What’s their timeline? Are they addressing all state and federal law requirements adequately?

Don’t assume that 700Credit handling notifications means you’re off the hook. Even if 700Credit notifies consumers and regulators, that may not satisfy all your obligations under your specific state or federal law. The basic rule is brutal but simple. Dealers remain totally accountable for guaranteeing adequate notice is communicated to affected clients, the FTC, credit reporting entities, and state attorneys general.

Notice obligations vary significantly under different state and federal laws. There’s no guarantee any customer notice will be sufficient under your state’s requirements. While you should certainly confirm 700Credit’s notification plans, that doesn’t end your inquiry or responsibility.