An activist short seller wrote a letter to the executive director of insurance giant Lemonade detailing an “accidentally discovered” vulnerability that exposes customers’ bank accounts.
Carson Block, founder of investment research firm Muddy Waters Research, sent the letter to Lemonade co-founder and CEO Daniel Schreiber on Thursday describing the flaw that allowed anyone to accidentally access personal information from customer accounts as ” unforgivably negligent ”.
Block’s letter reads, “By clicking search results from public search engines, we were shockingly logged in and were able to edit Lemonade customers’ accounts without providing user credentials.”
Lemonade was launched in 2015 and offers rental, homeowner and pet insurance in the US and Europe. The company went public last year and on the day it went public, its shares rose more than 130%.