Recently, First Financial Merchant Services, LLC d/b/a Payscape, also known as Payroc, confirmed a data breach resulting in the names, credit, and debit card numbers of certain consumers being compromised.

If you received a data breach notification, it is essential you understand what is at risk. More about our investigation into this breach, and what you can do if your data was stolen, is available here.

Last year, 1,862 data breaches affected more than 189 million people. On average, victims of identity theft spend 200 hours and over $1,300 recovering their identity. Many victims also suffer emotional distress, credit damage, and may even end up with a criminal record. Taking immediate action is the best way to prevent the worst consequences of a data breach.

What We Know So Far About the First Financial Merchant Services Data Breach

In 2020, First Financial Merchant Services merged with Billing Orchard, LLC. According to an official filing by the company, First Financial learned that an unauthorized party accessed a legacy computer system originally belonging to Billing Orchard, LLC. In response, the company secured its network and investigated the incident. This investigation revealed that there was unauthorized access to the Blue Orchard system between May 2017 and May 2019.

Upon learning of the extent of the security breach, First Financial Merchant Services then reviewed the affected files to determine what information was compromised. The company then confirmed that the unauthorized party was able to access certain customers’ names, debit card numbers and credit card numbers, including expiration dates.

Subsequently, First Financial Merchant Services began sending out data breach notification letters to all individuals whose information was compromised as a result of the recent data security incident.

First Financial Merchant Services, LLC operates a payment processing business known as Payscape or Payroc. The company operates online, as well as through brick-and-mortar locations in the United States and globally. United States Payroc offices are located in Atlanta, Georgia; Farmington, Utah; Des Plaines, Illinois; Lakewood Ranch, Florida; Munster, Indiana; and Whitefish, Montana. The company is based in Tinley Park, Illinois and generates approximately $265 million in annual revenue.

More About the Causes and Risks of Data Breaches

Often, data breaches are the result of a hacker gaining unauthorized access to a company’s computer systems with the intention of obtaining sensitive consumer information. While no one can know the reason why a hacker targeted Payscape, it is common for hackers and other criminals to identify those companies believed to have weak data security systems or vulnerabilities in their networks.

Once a cybercriminal gains access to a computer network, they can then access and remove any data stored on the compromised servers. While in most cases a company experiencing a data breach can identify which files were accessible, there may be no way for the company to tell which files the hacker actually accessed or whether they removed any data.

While the fact that your information was compromised in a data breach does not necessarily mean it will be used for criminal purposes, being the victim of a data breach puts your sensitive data in the hands of an unauthorized person. As a result, you are at an increased risk of identity theft and other frauds, and criminal use of your information is a possibility that should not be ignored.

Given this reality, individuals who receive a First Financial Merchant Services data breach notification should take the situation seriously and remain vigilant in checking for any signs of unauthorized activity. Businesses like Payscape are responsible for protecting the consumer data in their possession. If evidence emerges that Payscape failed to adequately protect your sensitive information, you may be eligible for financial compensation through a data breach lawsuit.

What Are Consumers’ Remedies in the Wake of the Payroc Data Breach?

When customers decided to do business with Payscape, they assumed that the company would take their privacy concerns seriously. And it goes without saying that consumers would think twice before giving a company access to their information if they knew it wasn’t going to be secure. Thus, data breaches such as this one raise questions about the adequacy of a company’s data security system.

When a business, government entity, non-profit organization, school, or any other organization accepts and stores consumer data, it also accepts a legal obligation to ensure this information remains private. The United States data breach laws allow consumers to pursue civil data breach claims against organizations that fail to protect their information.

Of course, given the recency of the First Financial Merchant Services data breach, the investigation into the incident is still in its early stages. And, as of right now, there is not yet any evidence suggesting Payscape is legally responsible for the breach. However, that could change as additional information about the breach and its causes is revealed.

If you have questions about your ability to bring a data breach class action lawsuit against First Financial Merchant Services, reach out to a data breach attorney as soon as possible.

What Should You Do if You Receive a First Financial Merchant Services Data Breach Notification?

If First Financial Merchant Services sends you a data breach notification letter, you are among those whose information was compromised in the recent breach. While this isn’t a time to panic, the situation warrants your attention. Below are a few important steps you can take to protect yourself from identity theft and other fraudulent activity:

1. Identify What Information Was Compromised: The first thing to do after learning of a data breach is to carefully review the data breach letter sent. The letter will tell you what information of yours was accessible to the unauthorized party. Be sure to make a copy of the letter and keep it for your records. If you have trouble understanding the letter or what steps you can take to protect yourself, a data breach lawyer can help.

2. Limit Future Access to Your Accounts: Once you determine what information of yours was affected by the breach, the safest play is to assume that the hacker orchestrating the attack stole your data. While this may not be the case, it’s better to be safe than sorry. To prevent future access to your accounts, you should change all passwords and security questions for any online account. This includes online banking accounts, credit card accounts, online shopping accounts, and any other account containing your personal information. You should also consider changing your social media account passwords and setting up multi-factor authentication where it is available.

3. Protect Your Credit and Your Financial Accounts: After a data breach, companies often provide affected parties with free credit monitoring services. Signing up for the free credit monitoring offers some significant protections and doesn’t impact any of your rights to pursue a data breach lawsuit against the company if it turns out they were legally responsible for the breach. You should contact a credit bureau to request a copy of your credit report—even if you do not notice any signs of fraud or unauthorized activity. Adding a fraud alert to your account will provide you with additional protection.

4. Consider Implementing a Credit Freeze: A credit freeze prevents anyone from accessing your credit report. Credit freezes are free and stay in effect until you remove them. Once a credit freeze is in place, you can temporarily lift the freeze if you need to apply for any type of credit. While placing a credit freeze on your accounts may seem like overkill, given the risks involved, it’s justified. According to the Identity Theft Resource Center (“ITRC”), placing a credit freeze on your account is the “single most effective way to prevent a new credit/financial account from being opened.” However, just 3% of data breach victims place a freeze on their accounts.

5. Regularly Monitor Your Credit Report and Financial Accounts: Protecting yourself in the wake of a data breach requires an ongoing effort on your part. You should regularly check your credit report and all financial account statements, looking for any signs of unauthorized activity or fraud. You should also call your banks and credit card companies to report the fact that your information was compromised in a data breach.

Below is a copy of the initial data breach letter issued by First Financial Merchant Services, LLC d/b/a Payscape (the actual notice sent to consumers can be found here):

Dear [Consumer],

First Financial Merchant Services, LLC understands the importance of protecting the information we maintain. We are writing to inform you of an incident that may have involved some of your information. This notice explains the incident, measures we have taken, and some steps that you may consider taking.

What Happened?

We completed an investigation into unauthorized access to a legacy computer system obtained by First Financial through the acquisition of Billing Orchard, LLC, which was an independent entity until late 2020, at which time it was merged into First Financial. Upon discovering the incident, our dedicated security team immediately took steps to assure the security of our network and began the investigation, with the support of a forensic investigation firm that was engaged to assist. The investigation determined that an unauthorized person obtained access to the Billing Orchard system between May 2017 and May 2019 and may have accessed some files stored on the system.

What Information Was Involved?

We reviewed the files involved and determined that your name and credit or debit card number (including expiration date) ending in <> was contained in the impacted files.

What We Are Doing.

We regret any inconvenience or concern this incident may cause. To further protect personal information, we have enhanced our existing security protocols and technical defenses.

What You Can Do.

We encourage you to remain vigilant by reviewing your account statements for any unauthorized activity. If the credit or debit card issued above remains active and you see charges or activity you did not authorize, please contact the card issuing bank immediately. For additional steps you may consider taking to protect your personal information, please see the additional information provided in this letter.

For More Information.

If you have any questions, please call (855) 541-3601 from 8:00 am to 5:30 pm Central Time, Monday through Friday, excluding some U.S. holidays.