A data broker operation sold payday loan applicants’ financial information to scammers, who took in millions of dollars by debiting bank accounts and charging credit cards without authorization, the Federal Trade Commission charged Wednesday.
The data brokers bought “hundreds of thousands of consumer payday loan applications” and, instead of passing them to legitimate payday lenders, sold them to non-lending third parties, the FTC charged in a complaint. Among the companies, was Ideal Financial Solutions Inc., which bought 500,000 applications and raided the accounts for at least $7.1 million, the FTC said.
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The FTC’s press release on the Sequoia One case can be found here.