Fairmont credit union must pay over $1.7M over data breach

FAIRMONT — Those hit by a hack to Fairmont Federal Credit Union may receive up to $7,500 in reimbursement for documented out-of-pocket losses and expenses.

Fairmont Federal Credit Union settled a class action lawsuit alleging the bank failed to properly secure and safeguard its customers' private information. According to the complaint, the bank experienced a security breach on September 30, 2023, but did not discover the breach until January 2024. The bank conducted an investigation after finding the hack.

"FFCU incredibly waited over a year and half until Sept. 11, 2025 to begin notifying impacted individuals of the unauthorized access," the complaint states.

Digital thieves took sensitive information such as birth address, Social Security numbers, military ID numbers, Medicare/Medicaid numbers, credit and debit card numbers and PIN information and other customer information including medical records. According to the suit, the breach potentially affected anywhere up to over 180,000 individuals. The complaint alleges Fairmont Federal kept private information belonging to customers in an unencrypted, internet-accessible environment.

Medical records are especially lucrative for digital thieves.

"Medical records are a gold mine for criminals — they can access a customer's name, [date of birth], Social Security and insurance numbers, and even financial information all in one place," Jim Trainor, second in command at the FBI's cyber security division said in the complaint. "Credit cards can be, say, $5 or more where Private Health Information records can from $20 say up to — we've even seen $60 or $70."

The complaint states medical records are valuable to thieves because health insurance information is less likely to be updated and the information can be used to fraudulently obtain surgeries, submit false billing or purchase prescription drugs.

In a notice announcing the breach from April 2025, Fairmont Federal said it was not aware of any incidents of identity theft or financial fraud as a result of the break-in. Julie Moore, an attorney from Bowles Rice the law firm that represents Fairmont Federal, did not return a request for comment.

Fairmont resident Timothy Knotts and North Carolina resident Richard Butler filed the class action suit against Fairmont Federal Credit Union. Butler had $25,000 stolen from his bank account. Knotts did not have money stolen, but the complaint states he will be at risk for fraud and identity theft for years to come.

Christopher Pence, attorney for the plaintiffs, did not return a request for comment.

Both parties entered into a settlement on Sept. 22. Under the terms of the settlement, Fairmont Federal will pay over $1.7 million into a settlement fund to resolve the litigation. Class members who qualify must submit documentation to receive their benefits. Benefits include up $7,500 in reimbursement for money spent remedying the issues related to the breach. Class members can also settle for an alternative cash payment of $150 and three years of credit monitoring and identity restoration services.

Claim forms must be submitted by Dec. 18. The court will hold a final approval hearing of the settlement on Feb. 8 2027.

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