MoneyGram Data Breach Exposes Sensitive Customer Information and Shuts Down Services

Cybersecurity Dive reports that the MoneyGram data breach, which happened between September 20 and 22, led to the theft of sensitive customer and transaction data. The hack disrupted services for several days until normal operations resumed on September 25.

MoneyGram, a global money transfer provider, initially referred to the event on social media as a network outage but later revealed it as a cybersecurity failure. The company has not disclosed how the attack occurred or whether ransomware was involved.

What is known is that the hacker accessed a significant amount of personal customer information, including bank details, Social Security numbers, and government-issued IDs. An ongoing investigation involving law enforcement and external cybersecurity experts is working to uncover further details about the MoneyGram data breach.

In a link to an earlier article, Cybersecurity Dive explains that MoneyGram has struggled to update its services to respond to digital competition in recent years. While companies like MoneyGram and Western Union are accustomed to charging fees of as much as 3%, their fintech rivals charge much less. 

MoneyGram was sold to private equity firm Madison Dearborn in 2022 for $1.8 billion. “Completing the transaction with MDP marks the beginning of a transformative new chapter for the organization,” Moneygram CEO Alex Holmes said in a press release on the completion of the sale to Madison Dearborn last year.

Holmes said that MDP’s support positioned MoneyGram to grow and expand while advancing its position as the leader in cross-border payment technology.