A SERIOUS error from an insurance company saw multiple customer bank accounts drained in an issue that went unnoticed for years.
The driver’s license numbers of some 190,000 individuals through its auto insurance quote platform were left exposed and has led to a new class action lawsuit.
GettyInsurance giant faces lawsuit after 190,000 drivers’ data was exposed in a major security breach[/caption] GettyVictims claim fraud and identity theft as the insurer’s error goes undetected for two years[/caption]According to Insurance Journal, digital insurer Lemonade has violated the privacy of as many as 190,000 drivers in a mistake that’s allowed cybercriminals into its online auto insurance quote platform.
The complaint, which has been filed in federal court in Manhattan, accuses Lemonade of negligence and violating the federal Driver’s Privacy Protection Act, New York business law, and Federal Trade Commission (FTC) data security guidelines.
Worse still, the data breach reportedly occurred between April 2023 and September 2024 – but was not detected by Lemonade until March 2025.
The company then began notifying affected individuals and regulators on April 10, 2025 – meaning there was a delay of two years.
Arizona resident Leslie Rich, who is the lead plaintiff in the New York lawsuit, alleges that Lemonade was negligent in disclosing his driver’s license number and other personal information through its platform.
As a result, Rich claims he was a victim of fraud and identity theft in October and November by criminals who obtained his personal information.
He says fraudsters were able to apply for multiple auto loans with multiple lenders in his name, as well as fraudulent trades on his retirement account with Fidelity.
In April, he received a letter informing him that Lemonade disclosed his driver’s license number to unauthorized third parties.
His complaint details how Lemonade’s website functions as a sort of driver’s license lookup tool which scammers can use to access driver’s license numbers.
The plaintiff claims Lemonade knowingly provides driver’s license numbers to any user who first enters a name and address – with the insurer failing to verify when a user is entitled to the information.
Furthermore, Lemonade’s platform does not employ effective security measures to detect whether a website visitor is a “bot” or an automated process, rather than an individual person.
The proposed class includes people who never applied for insurance with Lemonade and were not Lemonade customers – including Rich.
As a result, the suit claims the insurer “assisted an ongoing and concerted campaign by fraudsters to engage with insurers’ quote platforms to obtain driver’s license numbers to perpetuate known occurrences of fraud and identity theft.”
This isn’t the first time that Lemonade has been in hot water.
Last year, they reached a $5 million settlement in a case accusing them of illegally sharing life insurance applicants’ personal and health-related information to third parties.
These included on TikTok, Facebook and Snapchat, and contended that Lemonade’s conduct violated consumers’ privacy rights as well as federal and state laws.
Lemonade, which is headquartered in New York, offers renters’ insurance, homeowners’ insurance, car insurance, pet insurance and term life insurance in the US and has approximately 1.9 million customers.
They also serve France, the Netherlands, Germany and the UK.
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