Betterment confirms data breach after social engineering attack
Hackers exploited third-party tools to access Betterment systems and distribute fraudulent messages to customers, prompting a cybersecurity investigation.
Fintech investment platform Betterment has confirmed a data breach after hackers gained unauthorised access to parts of its internal systems and exposed personal customer information.
The incident occurred on 9 January and involved a social engineering attack connected to third-party platforms used for marketing and operational purposes.
The company said the compromised data included customer names, email and postal addresses, phone numbers and dates of birth.
No passwords or account login credentials were accessed, according to Betterment, which stressed that customer investment accounts were not breached.
Using the limited system access, attackers sent fraudulent notifications to some users promoting a crypto-related scam.
Customers were advised to ignore the messages instead of engaging with the request, while Betterment moved quickly to revoke the unauthorised access and begin a formal investigation with external cybersecurity support.
Betterment has not disclosed how many users were affected and has yet to provide further technical details. Representatives did not respond to requests for comment at the time of publication, while the company said outreach to impacted customers remains ongoing.
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