Prosper & 700Credit Hacks: Free Identity Protection
Two massive data breaches have compromised the personal information of nearly 20 million Americans in what cybersecurity experts are calling a watershed moment for fintech security. On September 1, 2025, Prosper Marketplace discovered unauthorized access to its systems that lasted for three months undetected. Weeks later, 700Credit uncovered a separate breach on October 25, exposing millions of dealership customers.
Together, these incidents represent the largest dual-fintech compromise of the year. Beyond the immediate shock, these breaches raise critical questions about identity verification standards, supply chain security, and whether traditional authentication methods are fundamentally broken.
Did you know? Fintech breaches increased 38% year-over-year as attackers increasingly target data-rich platforms.
Should fintech companies be legally required to purge consumer data after a defined inactivity period?
WHAT HAPPENED: BREACH TIMELINE & DATA EXPOSURE
Prosper Marketplace: 13.1 Million Affected
Prosper, a San Francisco-based fintech pioneer founded in 2005, operates one of the largest peer-to-peer lending platforms in the United States. The company has facilitated over $28 billion in personal loans to more than 2 million customers. On September 1, 2025, Prosper's security team detected unauthorized activity within their systems.
Timeline of the Prosper Breach:
June to August 2025: Attackers executed database queries to access customer and applicant files for three months without detection
September 1, 2025: Prosper discovered the unauthorized access
September to November 2025: Internal investigation and engagement with leading cybersecurity firm
December 9, 2025: Notification letters mailed to affected individuals
December 2025 onward: Notifications rolling out via email and certified mail
Data Stolen: The investigation confirmed that attackers accessed Social Security numbers, national identification numbers, dates of birth, bank account details, driver's license information, passport data, tax records, Prosper account numbers, financial application information, and payment card numbers.
Critical Detail: Prosper confirmed no evidence of unauthorized access to customer accounts or funds. Customer-facing operations remained uninterrupted throughout the incident. However, the sheer volume of sensitive personal and financial data exposed creates significant risk for identity theft, tax fraud, and account takeover attempts.
700Credit: 5.8 Million Affected
700Credit provides credit reports, compliance solutions, identity verification, and fraud detection services to approximately 18,000 auto, RV, powersports, and marine dealerships across the United States. The company serves as a critical infrastructure provider in the automotive retail supply chain, making this breach particularly significant.
Timeline of the 700Credit Breach:
May to October 2025: Attackers maintained unauthorized access to the 700Dealer.com web application
October 25, 2025: 700Credit discovered suspicious activity within the application layer
November 21, 2025: Impacted dealerships notified
December 2, 2025: 700Credit filed consolidated FTC breach notice on behalf of all affected dealers
December 2025 onward: Consumer notifications and credit monitoring enrollment underway
Root Cause, Supply Chain Vulnerability: The breach originated from a third-party vendor API vulnerability. Rather than 700Credit's internal systems being compromised, attackers exploited a weakness in the 700Dealer.com web application interface. This distinction is critical because it highlights a structural vulnerability in fintech supply chains: one vendor weakness cascaded to affect 18,000 businesses and millions of consumers.
Data Stolen: Names, Social Security numbers, dates of birth, and physical addresses. Unlike the Prosper breach, 700Credit's compromise did not include financial data, though SSN theft alone enables sophisticated fraud and identity hijacking.
Key Finding: According to 700Credit's investigation, attackers accessed approximately 20% of consumer records in the database during the five-month window. The company detected the intrusion themselves and terminated the exposed API endpoint upon discovery. Notably, 700Credit reported no evidence of actual identity theft, fraud, or misuse of the stolen data as of the breach announcement, but the potential for future exploitation remains high.
Should vendors be held financially liable for downstream consumer harm?
How to Check If Your SSN Was Compromised in the Breach
You may be affected if you are a current or former Prosper customer or obtained a vehicle through a dealership using 700Credit services. Both companies are mailing certified letters starting December 9, 2025.
To verify your status, visit Prosper.com or 700Credit.com for confirmation tools. Look for official activation codes in your notification letter. Do not respond to unsolicited emails claiming to be from these companies, social engineering attacks commonly follow major breaches.
Did you know? Post-breach phishing campaigns increase by up to 400%.
“Verification should always start from a known domain, not your inbox”
What to Do If Your Identity Was Stolen: SSN Dark Web Recovery
If you've confirmed identity theft, act immediately.
Step 1: Report to the FTC
Visit IdentityTheft.gov or call 1-877-438-4338. Create your FTC Identity Theft Report, it provides legal standing for disputes and compels creditors and bureaus to investigate.
Step 2: Contact Credit Bureaus
Call all three: Equifax (1-800-685-1111), Experian (1-888-378-4329), TransUnion (1-855-888-5091). Request fraud alerts, obtain credit reports, and dispute fraudulent accounts in writing.
Step 3: Dispute Fraudulent Accounts
Send written dispute letters to creditors and credit bureaus with copies of your FTC Identity Theft Report. Request written confirmation that accounts are fraudulent and removed. Follow up if disputes aren't resolved within 30–45 days.
Step 4: Use Free Identity Restoration
Prosper customers activate Experian Identity Restoration, a dedicated case manager handles creditor contact, dispute letters, and progress monitoring.
Step 5: File a Police Report
File a local police report if you have suspect information or if a creditor requests documentation. Consumers can locate local law enforcement agencies using USA.gov.
Step 6: Monitor for Extended Fraud
Tax fraud surfaces when the IRS processes returns. Verify benefit accounts, check credit reports every 90 days for 12 months, and watch for fraudulent utility or cell phone accounts.
Check your mail and bookmark official sites, do not wait for email prompts.
Free Identity Protection: What You're Entitled To & How To Enroll
Prosper's Offering
Prosper is providing two years of complimentary credit monitoring and identity restoration services through Experian, one of the three major credit bureaus.
What's Included
Experian IdentityWorks: Full credit monitoring across all three bureaus (Equifax, Experian, TransUnion)
Identity Restoration Services: Dedicated case manager to assist with fraud recovery if your identity is compromised
Cost: Zero dollars; fully covered by Prosper
How to Enroll:
1. Wait for official notification letter from Prosper (mailed December 9, 2025 onward)
2. Locate the activation code in the notification letter
3. Visit experianidworks.com/1bcredit (or the specific URL provided in your letter)
4. Enter your activation code and personal information
5. Enroll before March 31, 2026 (enrollment deadline)
6. Activate additional features as needed (credit freeze, fraud alert placement)
Important Note: While credit monitoring is valuable, it is reactive, it alerts you after fraudulent activity appears on your report. Credit monitoring alone does not prevent fraud; it helps you detect and respond to it.
700Credit's Offering
700Credit is providing free credit monitoring to affected individuals, with the duration determined by dealership client arrangements. Most consumers will receive 1–2 years of complimentary monitoring.
How to Enroll:
1. Instructions are included in dealership notifications sent on behalf of 700Credit
2. Contact your vehicle dealership directly if you haven't received notification
3. 700Credit is handling consolidated FTC notification, reducing individual dealership burden
Enroll immediately, free protection expires even if risk does not.
Why This Matters?
These breaches expose a fundamental problem: static identity verification is broken. Social Security numbers, dates of birth, addresses, and government IDs are now compromised for 19 million people and available on dark web marketplaces.
The fintech industry is moving to behavioral biometrics, technology that analyzes how you interact with devices rather than who you claim to be. Behavioral biometrics detect account takeover, bot fraud, and synthetic identity fraud with 99%+ accuracy. Unlike facial recognition (vulnerable to deepfakes) or passwords (easily compromised), behavioral patterns are nearly impossible to replicate.
Leading identity verification platforms now combine document verification, biometric verification, behavioral verification, and contextual analysis into multi-modal authentication. This approach prevents fraud without slowing down legitimate transactions.
Organizations handling sensitive data now require adaptive compliance frameworks that automatically adjust verification rigor by state and regulatory jurisdiction. This is becoming the baseline for fintech and financial services companies.
As a consumer, demand adaptive security, not just credit monitoring, from the companies you trust.
FAQs
How to check if SSN sold dark web?
You can check if your SSN was sold on the dark web by using a reputable dark web scan personal information tool offered through identity protection services or credit bureaus.
What is a dark web scan personal information check?
A dark web scan searches criminal forums, marketplaces, and dark web data brokers to see if your SSN, email, or other personal data appears in breach dumps.
If my SSN stolen dark web what to do first?
If your SSN is stolen on the dark web, immediately place a fraud alert or credit freeze, change passwords, and file an identity theft report.
Who are dark web data brokers?
Dark web data brokers are illegal actors who buy, sell, and trade stolen personal information such as SSNs and dates of birth.
How can I monitor if personal info dark web exposure continues?
You can monitor if your personal info appears on the dark web by enrolling in an SSN dark web monitoring service with continuous alerts.
References
Prosper Marketplace. (2025). Data breach notification and consumer disclosure. Retrieved from https://www.prosper.com
700Credit. (2025). FTC data breach notification and dealership communications. Retrieved from https://www.700credit.com
Experian. (2025). Experian IdentityWorks credit monitoring and identity restoration services. Retrieved from https://www.experian.com
Federal Trade Commission. (2025). Identity theft recovery and consumer guidance. Retrieved from https://www.identitytheft.gov
Equifax. (2025). Credit freeze, fraud alerts, and identity protection resources. Retrieved from https://www.equifax.com
TransUnion. (2025). Free credit freeze and identity monitoring services. Retrieved from https://www.transunion.com
National Conference of State Legislatures. (2025). State data breach notification laws and consumer rights. Retrieved from https://www.ncsl.org
