Glitch May Have Exposed Data of Thousands of Small Businesses Applying for Federal Relief Loans

Nearly 8,000 applicants to a Small Business Administration loan program may have had their data shown to other users filling out the application.

Thousands of small businesses seeking federal disaster loans in the wake of the coronavirus pandemic may have had their sensitive information exposed due to a glitch in a Small Business Administration program, according to The Washington Post.

Nearly 8,000 applicants to the Economic Injury Disaster Loan program may have had their personal information accidentally disclosed to other applicants. One government official told CNBC that the glitch occurred when an applicant was in the loan application portal and clicked the page’s back button. 

When they saw the previous screen, the applicant may have seen information belonging to another small business owner instead of their own. The SBA discovered the flaw on March 25 and sent a letter to affected users, noting that personal information such as social security numbers, addresses, financial data and insurance information.

“We immediately disabled the website, we mitigated the risks, implemented additional safeguards to prevent any future inadvertent disclosure,” the letter reads. “To date, there is no evidence to suggest that there has been any attempt to misuse any of this information.” 

The EDIL application, which usually assists businesses affected by natural disasters, has been expanded to include businesses affected by the COVID-19 crisis. (It is separate from the Paycheck Protection Program, which ran through $350 billion of available funding within two weeks). 

Read More: Industry Groups Push For More Cybersecurity Funding In Future COVID-19 Stimulus Legislation

Applicants affected by the error have been offered a year of free credit and identity monitoring services to ensure that their information is not stolen. The Post reported that the SBA has not answered questions about how the breach was discovered or how long it lasted. 

Security experts like Mark Bower, senior vice president at comforte AG, expressed concern that the need for speedy responses to the COVID-19 crisis has crowded out cybersecurity assurances during the application process. 

“Have best practices like data-centric security been traded-off to launch quickly, leading to further exposure and attack down the line?” Bower said. “The last thing these businesses need is their identity data abuse cascading to deeper economic injury risk.“ 

The initial statements from the SBA make it difficult for affected parties to understand what the impact will be, said Tim Erlin, the vice president of product management and strategy at Tripwire. But credit monitoring services should help business owners know if their data has been used on the dark web. 

“While any breach is unfortunate, it’s especially painful when the government exposes the personal data of citizens,” Erlin said. “There is likely plenty of blame to go around for an incident like this, but the focus should be on how trust can be restored and affected victims can be protected.”

About the Author

Haley Samsel is an Associate Content Editor for the Infrastructure Solutions Group at 1105 Media.

Featured

  • Data Driven, Proactive Response

    As cities face rising demands for smarter policing and faster emergency response, Real Time Crime Centers (RTCCs) are emerging as essential hubs for data-driven public safety. In this interview, two experts with deep field experience — Ross Bourgeois of New Orleans and Dean Cunningham of Axis Communications — draw on decades of operational, leadership and technology expertise to share how RTCCs are transforming public safety through innovation, interagency collaboration and a relentless focus on community impact. Read Now

  • Integration Imagination: The Future of Connected Operations

    Security teams that collaborate cross-functionally and apply imagination and creativity to envision and design their ideal integrated ecosystem will have the biggest upside to corporate security and operational benefits. Read Now

  • Smarter Access Starts with Flexibility

    Today’s workplaces are undergoing a rapid evolution, driven by hybrid work models, emerging smart technologies, and flexible work schedules. To keep pace with growing workplace demands, buildings are becoming more dynamic – capable of adapting to how people move, work, and interact in real-time. Read Now

  • Trends Keeping an Eye on Business Decisions

    Today, AI continues to transform the way data is used to make important business decisions. AI and the cloud together are redefining how video surveillance systems are being used to simulate human intelligence by combining data analysis, prediction, and process automation with minimal human intervention. Many organizations are upgrading their surveillance systems to reap the benefits of technologies like AI and cloud applications. Read Now

  • Right-Wing Activist Charlie Kirk Dies After Utah Valley University Shooting

    Charlie Kirk, a popular conservative activist and founder of Turning Point USA, died Wednesday after being shot during an on-campus event at Utah Valley University in Orem, Utah Read Now

New Products

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.