A proposed class-action lawsuit is underway against Wealthsimple, one of Canada’s most popular online investment platforms, following a serious data breach that exposed sensitive personal and financial information of its users.
The breach, which occurred on August 30 and was publicly disclosed in early September, compromised highly confidential data such as:
- Full names
- Residential addresses
- Social Insurance Numbers (SINs)
- Investment account numbers
- Government-issued IP addresses
According to Slater Vecchio LLP, the law firm behind the lawsuit, this information was accessed and stolen in the breach, potentially putting thousands of Canadians at long-term risk of fraud and identity theft.
Table of Contents
What the Lawsuit Aims to Do
Representing Victims Nationwide
The class-action proposal seeks to represent all Canadian residents whose data was compromised in the breach. In addition to the broad class, a subclass is being proposed for individuals who have already suffered direct harm, such as:
- Identity theft
- Fraudulent financial activity
- Emotional or psychological distress
- Out-of-pocket expenses related to securing personal information
Lawyer Urges Affected Users to Come Forward
Justin Giovannetti, an associate lawyer with Slater Vecchio, emphasized the importance of hearing directly from those impacted.
“We want to learn about the potential effects of this data breach,” said Giovannetti. “Going forward, there is potential harm to these people.”
Affected individuals are encouraged to contact the firm through their official website to share their experience and receive updates about the case.
Wealthsimple’s Response and Credit Monitoring Offer
Temporary Credit Monitoring Through Equifax
Wealthsimple has responded by offering two years of credit monitoring through Equifax, along with dark web monitoring and identity theft insurance. However, critics argue that this response falls short.
“If I’m a fraudster, I’m going to go into my calendar and set a reminder for two years from now,” Giovannetti said, highlighting the long-term nature of identity-related crimes.
Deadline to Enroll: November 30
Impacted users must enroll in the credit monitoring program by November 30, according to Wealthsimple’s notification. Those who miss this window may lose access to the complimentary services.
What’s Next in the Legal Process?
The class-action case is still in the proposal stage and must go through a certification hearing to determine if it can proceed. This process can often take several years.
If approved, the lawsuit could hold Wealthsimple accountable for what the plaintiffs allege was a failure to adequately protect client data and insufficient post-breach support.
Wealthsimple Denies Legal Claims
In a statement sent to CTVNews.ca, Wealthsimple strongly denied any wrongdoing:
“Immediately upon discovering the data security incident, we acted quickly to stop it. We notified all impacted customers and offered complimentary credit and dark web monitoring as well as identity theft protection and insurance. We take the privacy of our clients very seriously and remain focused on supporting them.”
The company has stated that it believes the claims in the lawsuit are without merit and that it plans to defend itself vigorously.
Final Thought:
The long-term implications of this data breach remain uncertain, but with legal action underway and rising public scrutiny, Canadians affected by the Wealthsimple incident may soon have their day in court. Until then, vigilance and timely action remain the best defense.