Cognizant alerts customers over data breach, offers $1 million identity theft cover

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IT services major Cognizant has notified customers about a data breach that took place on April 21, 2026. The company said some personal information may have been exposed, but there is no evidence so far that the data has been misused, reported Moneycontrol.

The disclosure comes at a time when several Indian IT companies are facing growing scrutiny over alleged employee data leaks. Tata Consultancy Services (TCS), HCLTech and Hexaware have all denied reports of data leaks at their organisations in recent weeks.

Cognizant said in its letter that it was notifying customers as a precaution, although it had found no evidence so far that their information had been misused.



According to media reports, the cybercrime group CoinbaseCartel has claimed responsibility for the incident. Reports suggest that the breach may have exposed Social Security numbers and other personal details.

The company has asked affected customers to consider filing a police report and placing a security freeze on their credit reports.

A credit freeze is a free security measure that prevents credit reporting agencies from sharing a person’s credit report with new lenders or other businesses without authorisation. This can help reduce the risk of someone using stolen personal information to open accounts or take credit in another person’s name.

Cognizant is also offering its customers identity theft protection through IDX, a company that specialises in data breach response and recovery.

The service will be available for 24 months and includes credit monitoring and CyberScan monitoring. Customers will also get access to a $1 million insurance reimbursement policy and assistance with recovering their identity if they become victims of identity theft.

The company said IDX would help customers deal with problems arising from any potential misuse of their personal information.

The Cognizant incident comes amid increasing concerns around the security of employee and customer information held by large IT companies.

TCS, HCLTech and Hexaware have recently rejected claims of data leaks involving their employees. While the companies have denied such allegations, the incidents highlight the growing risks faced by businesses that handle large volumes of sensitive personal and financial information.

For affected Cognizant customers, the company is recommending precautionary measures even though there is currently no evidence that the leaked information has been misused.

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