Security News > 2020 > April > Small Businesses Tapping COVID-19 Loans Hit with Data Exposure

A data breach at the agency in charge of providing financial relief to small businesses during the COVID-19 crisis may have exposed sensitive information of 8,000 business that applied, and may delay payouts, a government official said.

The Small Business Administration, which oversees the Economic Injury Disaster Loan program, has notified applicants of the potential data leak, according to a published report by CNBC. EIDL is aimed at helping small businesses weather the economic fallout from shutdowns and the resulting loss of business during the pandemic.

Four million small business owners applied for $383 billion in aid via the EIDL program, as well as for emergency grants that also are available, according to the SBA. The two programs are funded for just $17 billion.

To provide reparation for the potential breach, the government offered affected businesses identity theft protection services for a year, according to CNBC. So far, no misuse of any information from the potential leak has been evident, officials said.

Mark Bower, senior vice president at comforte AG, concurred that businesses should keep an eye out for potential attack scenarios in the coming months due to the incident, which is "The last thing these businesses need."

News URL

https://threatpost.com/small-businesses-covid-19-loans-data-exposure/155013/