Palacios Marine & Industrial Coatings Data Breach Exposes SSNs

Palacios Marine & Industrial Coatings Inc. (PMI), a full-service general mechanical contractor based in Port Lavaca, Texas, disclosed a data breach involving unauthorized access to its computer systems. The breach has so far affected 12,227 residents of Texas and one of Maine.

PMI discovered the breach on March 13, 2026, and began notifying affected consumers in writing on March 30, 2026. The breach was reported to the Maine Attorney General and to the Texas Attorney General starting on on March 30, 2026.

The company also posted a notice of the incident on its website describing what happened and outlining protective resources for those whose data may have been compromised.

What happened in the Palacios Marine & Industrial Coatings data breach

On Sept. 30, 2025, PMI detected irregular activity within its computer network, according to the company's notification to consumers. The company stated that it took steps to secure its network and launched an investigation to determine the nature and scope of the unauthorized activity.

The investigation found that on Sept. 30, 2025, an unauthorized actor gained access to certain computer systems and potentially accessed or acquired files stored on those systems.

Following this finding, PMI undertook a thorough review of the affected files to identify individuals whose personal information was contained in them. Approximately five and a half months after the initial detection of unauthorized activity, the review process recently concluded.

The types of personally identifiable information exposed in this breach included names, Social Security numbers, driver's license or state ID numbers, financial account information, usernames and passwords, and passport numbers. Health insurance information was also among the data potentially accessed.

Palacios Marine & Industrial Coatings' response to the breach

To help affected individuals protect themselves, PMI is offering 12 months of complimentary identity monitoring services through Kroll, a global risk mitigation firm. These services include single bureau credit monitoring, which sends alerts when changes appear on a person's credit file.

The package also includes unlimited access to fraud consultation with Kroll specialists and identity theft restoration services. Affected individuals who wish to enroll must visit the enrollment website and enter the unique membership number included in their notification letter before the deadline specified in that letter.

In addition to the monitoring services, PMI is providing affected individuals with guidance on how to protect against identity theft and fraud. This guidance includes information on placing fraud alerts and credit freezes, monitoring credit reports, reporting suspicious activity and contacting the Federal Trade Commission.

For questions about the incident, PMI has set up a dedicated assistance line at 844-403-4522, available between 8:00 a.m. and 5:30 p.m. Central Time, excluding major U.S. holidays. Individuals may also write to the company at 2392 State Highway 35 North, Port Lavaca, TX 77979.

Steps to take if your information was exposed

• Place a fraud alert or credit freeze on credit files by contacting Equifax (1-888-298-0045), Experian (1-888-397-3742) and TransUnion (1-833-799-5355) to help prevent unauthorized accounts from being opened.
• Request free credit reports at AnnualCreditReport.com and review them carefully for unfamiliar accounts, inquiries or other suspicious activity.
• Change usernames and passwords for any accounts that may share the same credentials exposed in this breach, and enable multi-factor authentication where available.
• Monitor financial accounts and insurance statements by reviewing bank statements, credit card activity and health insurance Explanation of Benefits documents for unauthorized transactions or services.
• Report suspected identity theft to the Federal Trade Commission at identitytheft.gov or by calling 1-877-438-4338, and file a report with local law enforcement if needed.
• Be cautious of phishing attempts that reference Palacios Marine & Industrial Coatings or this breach by name, as scammers often use breach notifications to trick people into sharing additional personal information.