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Sep 28, 2024 • 6 min read

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MC2 Data Breach
Buffalo Bills Stadium Bonds

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MC2 Data Breach:

A recent data breach at MC2 Data, a background check company, exposed a 2.2TB database containing personal information of over 100 million U.S. citizens. The database was found unprotected and accessible online without a password, leaving sensitive data vulnerable. The information exposed includes names, addresses, phone numbers, birthdates, employment histories, legal records, property records, and partial payment details. In addition to the individuals whose background information was stored, over 2.3 million users who subscribed to MC2 Data’s services were also affected.
MC2 Data operates several background check websites, collecting publicly available information for use by employers, landlords, and other organizations in decision-making processes, such as verifying identities and evaluating candidates for housing or employment. The exposed data contains encrypted passwords and extensive details about individuals’ family members, relatives, and even neighbors. This kind of personal information could potentially be exploited by malicious actors for identity theft, fraud, or other cybercrimes.
Security experts have emphasized that the breadth of the exposed data makes this breach particularly concerning. With detailed personal records now available online, cybercriminals have access to valuable information that could be used to impersonate individuals, compromise their financial accounts, or engage in phishing attacks. The subscribers affected by the breach, which may include employers and law enforcement, could also become prime targets due to their access to further sensitive information.
Despite the severity of the breach, MC2 Data has not yet made a public statement regarding the incident or what measures will be taken to mitigate its impact. In the meantime, cybersecurity professionals recommend that individuals affected by the breach take immediate steps to secure their personal information. This includes updating passwords, enabling two-factor authentication on accounts, and monitoring for any signs of identity theft or suspicious activity. The breach has underscored the importance of strong security protocols, particularly for companies handling vast amounts of personal data.

Buffalo Bills Stadium Bonds:

Buffalo Bills fans recently participated in a bond sale designed to help finance the construction of the team’s new $1.7 billion stadium in Orchard Park, New York. The bonds, referred to as "Bills Bonds," were sold as part of a larger $850 million public financing package, which includes contributions from Erie County and New York State. About 100 retail investors, including members of the passionate fan base known as Bills Mafia, placed orders for the municipal bonds during the initial offering, purchasing around $2.7 million worth of debt. These bonds were made available to individual investors before institutional pricing, giving local buyers first access to the debt.
The municipal bonds are tax-exempt, offering a yield of 3.45%, which is particularly attractive to high-income investors in New York, where state tax rates are among the highest in the U.S. For those in the highest tax bracket, the effective yield on the tax-exempt bonds would be equivalent to about 7% on taxable securities. This makes the bonds a strong investment option for those looking to benefit from the tax exemptions, without taking on significant credit or liquidity risks. The bonds were rated AA by S&P Global Ratings, indicating strong credit quality and relatively low risk.
This bond sale is part of a broader trend of public financing for sports stadiums, where local governments contribute taxpayer dollars to fund large-scale construction projects. In this case, Erie County is responsible for $250 million of the overall project cost, and the bond sale helps reduce the immediate cash outlay required from the county’s budget. While critics often argue that public financing for stadiums provides limited economic benefits to local communities, supporters see this as an opportunity for fans and local investors to support the team and the regional economy.
Despite the controversy around publicly funded stadiums, the bond sale was well received by Bills fans and investors. The structure of the offering allowed local individuals to participate in the financing of the stadium, which is expected to open in 2026. This type of retail investor-focused bond offering is not uncommon in high-tax states like New York, where the tax-exempt status of municipal bonds is particularly appealing. Going forward, the financing of the Bills' new stadium will continue to involve a mix of public and private funding sources as the project progresses.

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