Affirm Card Users' Data Compromised in Evolve Bank Cybersecurity Breach: Report

Affirm Holdings Inc AFRM announced on Monday that the personal information of its card users was compromised due to a cybersecurity incident at Arkansas-based Evolve Bank and Trust.

The breach occurred last week and resulted in customers’ data being leaked on the dark web.

Evolve Bank, a third-party issuer of Affirm cards, confirmed the incident but stated that Affirm’s systems remained uncompromised.

Affirm cardholders can continue to use their cards without interruption, as the breach did not affect Affirm’s infrastructure, Reuters reports.

A spokesperson for Evolve Bank mentioned that law enforcement agencies have been engaged to assist with the investigation and response to the cybersecurity incident.

Affirm also initiated its independent investigation upon learning of the breach to assess any potential compromise of user information.

Affirm’s business model has evolved, diversifying its revenue, credit, and customer mix, according to analysts.

They flagged the Buy Now Pay Later (BNPL) pioneer for its closed-loop payment network that captures proprietary transaction data, enhancing its underwriting capabilities.

Affirm stock gained over 85% in the last 12 months. Investors can gain exposure to the stock via Amplify ETF Trust Amplify Mobile Payments ETF IPAY and Global X FinTech ETF FINX.

Price Action: AFRM shares were trading lower by 0.80% at $29.59 premarket at the last check on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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