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Prosper Funding Data Breach Investigation | Privacy Lawyers

Written by Joseph Lyon on . Posted in Data Breach.

In September 2025, Prosper Funding LLC confirmed that it had experienced a cybersecurity incident that exposed sensitive customer information. Prosper, an online lending platform, announced that an unauthorized party gained access to databases containing confidential records. Early reviews suggest that Social Security numbers and other forms of personal data may have been compromised, though the full scope of the incident is still unknown.

This development is troubling for both current and former Prosper customers. Even if there has been no evidence of immediate financial fraud, the exposure of private identifiers increases the risk of identity theft and financial scams for years to come. Contact our data breach attorneys to learn more about how to protect your personal data. 

What Information Was Exposed?

Prosper has acknowledged that multiple categories of data were potentially affected. Although the investigation continues, reports suggest that exposed records could include:

  • Full names and contact information

  • Dates of birth and Social Security numbers

  • Address details and account information tied to applications

When such data sets fall into the wrong hands, they can be pieced together to impersonate consumers, open fraudulent lines of credit, or launch targeted phishing campaigns. Unlike a stolen password that can be changed, Social Security numbers and dates of birth are permanent identifiers, making their disclosure especially harmful.

Following the discovery of the incident, Prosper launched its internal response plan, brought in cybersecurity experts, and alerted regulators. The company also began mailing notices to potentially affected individuals and has offered complimentary credit monitoring services.

Who is Liable For a Data Breach?

Events like this raise important legal questions. Companies that collect and store consumer data have a duty to implement reasonable safeguards. If security measures are found to be inadequate, customers may argue that Prosper failed to protect their information. Possible legal theories include:

  • Negligence — alleging that Prosper did not employ adequate security protections.

  • Breach of contract — arguing that by offering lending services, the company implicitly promised to keep personal data safe.

  • Consumer protection violations — many states impose strict obligations to notify affected individuals promptly, and delays can expose companies to regulatory action.

If large numbers of customers share similar experiences, a class action lawsuit could be pursued. Regulators may also launch independent investigations to determine whether privacy laws were violated. Anyone who receives a breach notification from Prosper should take immediate action to protect themselves.

Why Hire Our Data Breach Attorneys?

Being caught up in a data breach is stressful, but you do not have to navigate the fallout alone. The data breach attorneys at The Lyon Firm can:

  • Analyze what information was compromised and whether you face heightened risks.

  • Calculate the full extent of damages, including out-of-pocket expenses, emotional distress, and long-term monitoring costs.

  • Determine whether Prosper met its legal obligations to secure data and notify customers in a timely fashion.

  • Pursue compensation through individual claims, class actions, or settlement negotiations.

  • Ensure your rights are preserved before deadlines expire.