Prosper controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile4 entries
2025
Reported data breach
Prosper disclosed unauthorized access to its systems. A third-party cybersecurity report alleged exposure involving 17.6 million email addresses and other personal, address, identity, and credit-related data; Prosper said it had not validated the full claim while its investigation continued.
2015
Loan associated with San Bernardino attacker
Authorities investigated a report that Syed Rizwan Farook had borrowed $28,500 through Prosper to finance weapons and explosives connected with the San Bernardino attack. The investigation concluded without action against Prosper.
2008
SEC securities-law enforcement
The SEC found Prosper in violation of the Securities Act of 1933 over the offering of loan notes and issued a cease-and-desist order. The action contributed to the broader regulatory treatment of peer-to-peer lending notes as securities.
2008
Class action over unregistered securities
A California class action alleged that Prosper had sold unqualified and unregistered securities to note purchasers. The case was settled in 2013 for $10 million.