Startups scramble to assess fallout from Evolve Bank data breach

Lorenzo Franceschi-Bicchierai and Mary Ann Azevedo
Updated ·3-min read

On Wednesday, Evolve Bank and Trust, a financial institution that’s popular with fintech startups, announced that it had been victim of a cyberattack and data breach that could have affected its partner companies as well.

The incident, according to the company's statement, involved “the data and personal information of some Evolve retail bank customers and financial technology partners’ customers.”

When reached by TechCrunch, Evolve's communications chief Thomas Holmes said that the incident involves “a known cybercriminal organization.”

“It appears these bad actors have released illegally obtained data, on the dark web,” said Holmes, declining to comment further.

The cybercriminals responsible for the breach appear to be the notorious ransomware gang LockBit, which posted data allegedly stolen from Evolve on its dark web leak site.

Evolve lists a series of companies on its site as partners that rely on the banking giant to offer some of their financial and lending services. To understand the impact of the Evolve breach on these companies, TechCrunch reached out to Affirm, Airwallex, Alloy, Bond, Branch, Dave, EarnIn, Marqeta, Mastercard, Melio, Mercury, PrizePool, Step, Stripe, TabaPay and Visa.

Only Affirm, EarnIn, Marqeta and Melio responded to the request for comment.

Affirm spokesperson Matt Gross told TechCrunch that the company is investigating the incident and “will communicate directly with any impacted consumers as we learn more.”

Affirm also alerted its customers in a post on X, writing that the Evolve breach “may have compromised some data and personal information” of Affirm customers. The company also said that it’s safe to use its card and Money Accounts, and that its investigation into the impact of the breach is still ongoing.

EarnIn spokesperson Stephanie Borman said that the company is “aware of this incident and monitoring it closely.”

Marqeta spokesperson Kelly Kraft told TechCrunch that the company is aware of the breach, and that "Evolve supports a small part of our overall business."

"Our customers affected by this incident have been notified, and we are working closely with Evolve to understand their remediation effort and how our mutual customers may be impacted," Kraft said in an email.

Melio co-founder and CEO Matan Bar told TechCrunch that the company is aware of the breach and "diligently working with them to determine if Melio or any of our customers were impacted by it. We will keep our customers informed with any relevant information as we learn more. There have been no disruptions to Melio's operations as a result of this incident."

Another Evolve partner, the fintech startup Mercury, said on X that the Evolve breach impacted records associated with the company, “including some account numbers, deposit balances, business owner names, and emails.”

As more affected companies come forward, the true impact of the Evolve breach on “some Evolve retail bank customers and financial technology partners’ customers” — as the company put it — will likely become clearer.

Evolve has made headlines recently for other matters related to its fintech partnerships. On June 14, the Federal Reserve ordered Evolve Bank “to bolster its risk management programs around fintech partnerships as well as anti-money laundering laws.”

According to a statement by the Fed, examinations conducted in 2023 found that Evolve “engaged in unsafe and unsound banking practices by failing to have in place an effective risk management framework for those partnerships” with financial technology companies.

The bank has also been associated with the meltdown of banking-as-a-service startup Synapse, which provided a service that allowed others — mainly fintechs — to embed banking services into their offerings. When Synapse filed for bankruptcy this year and an attempted rescue acquisition of its assets by TabaPay fell through, the company pointed blame at its partner bank, Evolve — a saga that continues to play out.

This story was updated to include Marqeta and Melio's comments.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Is NVIDIA Corporation (NVDA) The Best Growth Stock To Buy Now According To Ray Dalio?

    We recently compiled a list of the 10 Best Growth Stocks To Buy Now According To Billionaire Ray Dalio. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other growth stocks. Ray Dalio is one of the most successful investors in Wall Street’s history. He has […]

  • Alibaba Stock Has Languished While Tencent Has Soared. One Reason Why.

    Shares in Tencent, like much of the rest of Chinese tech, have been slammed since Beijing began a crackdown on technology companies in late 2020.

  • This Stock Is Beating Nvidia—and It’s Set to Climb Even More

    Abercrombie & Fitch’s stock has smoked Nvidia’s in the past year. A strategic makeover under CEO Fran Horowitz is winning fans on Wall Street and Main.

  • Warren Buffett donates again to the Gates Foundation but will cut the charity off after his death

    Investor Warren Buffett announced another $5.3 billion in charitable gifts Friday, but in a major shift of his longtime giving plan he said he plans to cut off donations to the Bill & Melinda Gates Foundation after his death and let his three children decide how to distribute the rest of his $128 billion fortune. Buffett laid out his new plan for his estate in an interview with the Wall Street Journal. The 93-year-old billionaire who leads Berkshire Hathaway didn't immediately respond to questions from The Associated Press on Friday about his plan that calls for Howard, Susie and Peter Buffett to unanimously agree where to give his Berkshire Hathaway stock after his death.

  • New inflation reading offers hope for Fed rate cuts later this year

    The Fed got another positive signal that inflation is easing after running hotter-than-expected in the first quarter, but the central bank still likely needs more time before cuts can begin in 2024.

  • The Wealthiest Person in China

    We recently compiled a report on the 30 Wealthiest People in China and in this article we will look at the richest person. An Analysis of the Chinese Economy On May 29, Reuters reported that China is seeing signs of economic recovery after a long period of sluggish economic growth. Consumer spending in China has […]

  • Singapore Post Full Year 2024 Earnings: EPS Beats Expectations

    Singapore Post ( SGX:S08 ) Full Year 2024 Results Key Financial Results Revenue: S$1.69b (down 9.9% from FY 2023). Net...

  • Unveiling Three Stocks That May Be Trading Below Their Estimated Intrinsic Value

    As global markets demonstrate resilience, with the S&P 500 reaching new highs and value stocks showing strength, investors may find opportunities in stocks that appear undervalued relative to their intrinsic worth. In this context, identifying stocks trading below their estimated intrinsic value could be particularly timely, offering potential for appreciation as market conditions evolve.

  • Top Stock Market Highlights of the Week: Amazon, Hongkong Land and Valuetronics

    An e-commerce behemoth hits a new market capitalisation milestone while a reputable property owner and developer carries a billion-dollar property revamp. The post Top Stock Market Highlights of the Week: Amazon, Hongkong Land and Valuetronics appeared first on The Smart Investor.

  • Here is What to Know Beyond Why Sea Limited Sponsored ADR (SE) is a Trending Stock

    Zacks.com users have recently been watching Sea Limited (SE) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

  • Is Now The Time To Put Hotel Properties (SGX:H15) On Your Watchlist?

    It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

  • 5 Ways To Fight Inflation That Actually Work — And 5 That Don’t

    If you've seen yourself paying a hefty bill at the grocery store or tried to fill your tank, only to get a fraction of what you once paid for, you've likely noticed that many of these costs have...

  • Global stocks mixed as elections heat up

    Equity markets were mixed Friday as investors assessed fallout from a bumpy US presidential debate and looked ahead to weekend elections in France that could boost the far right."We don't think Biden's disastrous performance at last night's debate will have a material impact on markets in the short term," said Kathleen Brooks, research director at XTB. "The election is still many months away and a lot could change."

  • Stock market today: AI frenzy leads stocks to rip-roaring first half of 2024

    Investors are watching for a cooling in the Fed-favored PCE print to boost rate-cut hopes as they assess Biden's faltering performance in the Trump debate.

  • How to Move Out of Cash Before Interest Rates Drop

    An ultrashort bond strategy can achieve a higher return from a touch more interest-rate exposure, price appreciation and spread income.

  • US inflation cools in May, boosting hopes of Fed rate cut

    U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Federal Reserve closer to start cutting interest rates later this year. The report from the Commerce Department on Friday also showed consumer spending rose marginally last month. Underlying prices advanced at the slowest pace in six months, raising optimism that the U.S. central bank could engineer a much-desired "soft landing" for the economy in which inflation cools without triggering a recession and a sharp rise in unemployment.

  • Stocks Are Defecting to New York. Buy This S&P 500 Shoo-In and Antidote to Nvidia.

    A paper and packaging company may not seem worth a second look in an era when hot technology names such as Nvidia  streak skyward and growth stocks trounce value. Smurfit WestRock is set to begin trading in New York on July 8 as a paper powerhouse worth more than $20 billion, the creation of Ireland’s Smurfit Kappa buying U.S. WestRock for $11.15 billion in a merger announced last September. Smurfit Kappa revealed Thursday that the deal has cleared all regulatory hurdles, with the company’s delisting from Dublin and London set for the first week of July, before shares in the new company are issued to both Smurfit and WestRock investors.

  • 5 Stocks With High ROE to Buy on Sustained AI-Infused Rally

    Genuine Parts (GPC), CSX Corporation (CSX), PulteGroup (PHM), Kellanova (K) and Banco de Chile (BCH) are some of the stocks with high ROE to profit from as markets move up on AI-driven rally.

  • How to shield your savings from a Labour tax raid

    Savers must act now to protect their wealth from the Government – and a possible incoming Labour administration.

  • Suze Orman: 3 Ways To Prepare for the Upcoming Financial Pandemic

    Suze Orman is sounding the alarm on a looming "financial pandemic" as Americans eclipse $1 trillion in total credit card debt. She worries that many households won't be able to keep up with their...