Prosper Marketplace Data Breach Lawsuit: What 17.6 Million Victims Need to Know
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One of the largest financial data breaches of 2025 — hackers accessed Social Security numbers, bank accounts, and passports of 17.6 million Prosper customers and applicants.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Lawsuit Alleges
Between June and August 2025, unauthorized actors accessed Prosper Marketplace's systems and exfiltrated sensitive data of approximately 17.6 million customers and loan applicants. Prosper detected the intrusion on September 2, 2025 and began notifying victims on September 17, 2025. The class action alleges Prosper failed to implement reasonable data security, enabling theft of names, Social Security numbers, dates of birth, bank account and credit card numbers, driver's license and passport numbers, and loan histories.
Case Details
U.S. District Court, Northern District of California — Case No. 3:25-cv-07947-CRB, In re: Prosper Funding, LLC Data Breach Litigation (Judge Charles R. Breyer). Consolidated Dec 2025; amended complaint filed March 30, 2026.
Current Status
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There's no claim deadline yet. We'll email you if a settlement opens a claim period.
Who Is Affected & Can You Join?
Current and former Prosper customers, borrowers, and loan applicants whose personal information was compromised in the June–August 2025 breach. Residents of California, New York, and Virginia may have additional state-law claims.
Is There a Payout?
How cases like this one end
Our copy of the federal courts’ own case database covers 129,730 other contract casesclosed in U.S. federal district courts between 2015 and 2026, 6% of them filed as class actions:
- 30.7% ended in a settlement recorded by the court. Another 20.2% were dismissed voluntarily, which often follows a private settlement — so the real settlement share sits between 30.7% and 50.9%.
- 7.5% were decided on a motion before any trial.
- 1 in 72 reached a trial (1.4%), after a median of 29.3 months.
- Median time from filing to the end of the case: 7.6 months.
- Only 7,691 of them (5.9%) record a money award at all; the median of those is $407,000.
These are base rates for this type of case (federal other contract cases) — not a prediction about this lawsuit, and not legal advice. Source: Federal Judicial Center, Integrated Database (civil), analysed by Settlement Insight. Cases heard in state courts are not included.
Case Timeline
- 1
Breach Occurs (June–Aug 2025)
Unauthorized actors infiltrated Prosper's systems and copied databases with personal and financial data of ~17.6 million customers and applicants.
- 2
Breach Discovered & Disclosed (Sep 2025)
Prosper detected the intrusion on September 2 and began mailing breach notices on September 17, 2025, disclosing exposure of SSNs, bank accounts, and passports.
- 3
Class Actions Filed (Sep–Dec 2025)
Multiple proposed class actions were filed in the Northern District of California beginning September 18, 2025; the court consolidated them in December.
- 4
Lead Counsel Appointed (Feb 2026)
On February 13, 2026, Judge Breyer appointed co-lead counsel for the plaintiff class.
- 5
Amended Complaint Filed (Mar 2026)
Plaintiffs filed a consolidated amended complaint on March 30, 2026; the case proceeds toward discovery with no settlement reached.
Scam & Misinformation Warnings
Whenever a brand lawsuit goes viral, scam sites and bad actors follow. Watch for these red flags:
Fake Claims Sites — No Process Yet
There is no court-approved claims process for the Prosper breach as of 2026; any site asking you to 'file your Prosper claim' and collecting personal info is not legitimate.
Upfront Fee Demands
Legitimate class-action and mass-arbitration firms work on contingency — you pay nothing upfront. Avoid any firm demanding payment before filing.
Phishing Emails Mimicking Prosper
Scammers impersonate Prosper or law firms asking you to 'verify' information for compensation. Official settlement notices come by first-class mail from a court-approved administrator, not unsolicited email.
Frequently Asked Questions
What happened in the Prosper data breach?
Hackers accessed Prosper's systems between June and August 2025, stealing records of ~17.6 million people, including SSNs, bank and credit card numbers, driver's license and passport numbers, and loan histories.
How do I know if my data was exposed?
If you are a current or former Prosper borrower or applicant, you may have received a breach notice. You can also check haveibeenpwned.com or contact Prosper. Prosper offered two years of complimentary credit monitoring via Experian.
Can I file a claim now?
No court-approved claims process exists yet. The federal class action filed its amended complaint in March 2026 and is in early litigation. Some firms are coordinating mass arbitration — consult a data-breach attorney.
How much could victims receive?
No settlement amount is set. Similar large breach settlements often pay $25–$150 per person, with more for documented identity-theft losses. Mass-arbitration claims are estimated by some attorneys at $550–$1,000+.
Were Prosper loans and funds affected?
Prosper said there's no evidence customer accounts or funds were directly compromised, but the stolen data creates serious identity-theft and account-takeover risk.
What court is handling it?
The U.S. District Court for the Northern District of California, before Judge Charles R. Breyer — Case No. 3:25-cv-07947-CRB, In re: Prosper Funding, LLC Data Breach Litigation.
What steps should I take?
Freeze your credit at all three bureaus (free), enroll in Prosper's offered Experian monitoring, watch your accounts, document any losses, and consider consulting a data-breach attorney.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.