For companies doing business in California, a data breach is more than a security headache—it's an existential legal threat.
The California Privacy Rights Act (CPRA) gives consumers the power to sue your business directly in a class-action lawsuit if their personal information (PI) is breached.
Statutory damages of $100 to $750 per consumer, per incident.
If just 10,000 California users are in a breach, you face a minimum lawsuit of $1M to $7.5M—even with no actual financial harm.
This private right of action is triggered if your company failed "to implement and maintain reasonable security procedures and practices."
The Critical Question for Your Business:
In 2025, is failing to monitor for your users' leaked credentials considered "reasonable security?"
For any court or regulator, the answer is a clear NO.
The CPRA doesn't list every required security tool, but it relies on a legal standard. "Reasonable security" means protecting against known, foreseeable threats.
The most common and foreseeable threat is credential stuffing—the automated use of leaked passwords to take over user accounts. The California Attorney General has explicitly called this out as a major threat.
If your organization is breached using this method, and you have no system in place to detect or block compromised passwords, you will be unable to prove you took "reasonable" steps to protect your users.
The CCPA's private right of action applies to "non-encrypted and non-redacted personal information." Many companies believe this is a "safe harbor."
They are wrong.
A stolen password is the key that unlocks the encryption. When an attacker uses a valid, leaked credential to log in, they are authenticated as a legitimate user.
All the data they see—names, addresses, purchase history—is un-encrypted and un-redacted.
A leaked credential bypasses your encryption safe harbor, making you fully liable for the breach and the fines that follow.
The attacker appears as an authorized user, making traditional security controls ineffective against this attack vector.
Encryption alone is NOT a defense against credential-based breaches under CCPA/CPRA.
Our Leaked Credential Monitoring platform is your single most powerful defense for proving CCPA/CPRA due diligence.
It provides a clear, documented, and proactive "reasonable security procedure" that directly mitigates the #1 attack vector.
Proactive Monitoring
We monitor multiple intelligence sources 24/7—including underground forums, threat actor networks, the deep and dark web, and HUMINT operatives. The instant a credential for one of your users or employees appears in a breach, we alert you.
This allows you to force a password reset and lock the account before an attacker can use it, preventing the breach entirely.
Password Blacklisting
Our API integrates with your sign-up and password reset pages. We block your users from choosing a password that is already on a known-compromised list.
This directly satisfies the industry-standard "reasonable security" expectation and demonstrates proactive protection measures.
Audit Trail
In the event of a lawsuit or a regulatory investigation by the California Privacy Protection Agency (CPPA), you will have an auditable, time-stamped record.
You can prove that you were proactively monitoring for this threat, helping to shield your company from fines and liability.
Per California consumer affected, even with no actual damages proven.
Per California consumer affected. Class actions can reach tens of millions.
Private right of action enables class-action lawsuits from affected consumers.
Failing to monitor for leaked credentials is a known gap in security. Under the CPRA, that "known gap" is all a lawyer needs to argue you failed your duty of care.
Don't let a "willful neglect" violation open your company to devastating, class-action lawsuits. Our service is the most effective and affordable way to demonstrate "reasonable security" and protect your customer's personal information.
Comprehensive monitoring
Immediate breach detection
Legal defense documentation
Protect your business from CCPA/CPRA class-action lawsuits. Implement proactive credential monitoring and build your legal defense before a breach occurs.
California Civil Code Section 1798.150: The CCPA's private right of action allows California consumers to sue businesses directly in the event of a data breach involving their personal information. The CPRA (effective January 2023) expanded these protections and increased enforcement.
What "Reasonable Security" Means: Courts interpret "reasonable security" based on industry standards, the sensitivity of the data, and the known threat landscape. In 2025, credential stuffing is a well-documented, prevalent threat that businesses are expected to defend against.
Credential Stuffing Statistics: According to industry reports, credential stuffing attacks account for billions of login attempts annually. The California Attorney General has specifically warned businesses about this threat in official guidance documents.
The California Privacy Protection Agency (CPPA): The CPRA established the CPPA as the dedicated enforcement agency for California privacy law. The agency has rulemaking authority and can investigate businesses for non-compliance, in addition to private lawsuits from consumers.
Class Action Risk: Because CCPA allows for statutory damages without proof of actual harm, class-action lawsuits can aggregate damages across thousands or millions of affected consumers, creating existential financial risk for businesses.