Envestnet, Yodlee Hit With Data Security Class Action

Envestnet Inc. and its subsidiary, financial data aggregator Yodlee Inc., are facing a proposed class action over the alleged failure to safeguard customer data, including sharing it in unencrypted files.

The proposed class members are at “significant risk of fraud and identity theft,” due to Yodlee’s failure to take even the most basic steps to protect this highly sensitive data, such as requiring a password to open the files, the complaint filed in the U.S. District Court for the Northern District of California alleges.

Yodlee collects data, such as bank balances and credit card transaction histories, from software products that ...