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It is too bad all these people trusted a bad company which cared little about them or their privacy.
This isn't an issue if you give private information to "good" companies since they don't suffer data breaches. Make sure to check their website for the authentic "good company" seal.
Indeed, how can anyone know?
I think failures like this will be readily apparent, within months after launch, to technically minded people only. But only if people have summaries in their news feeds or know how to research the opinions of others..
Perhaps non technical people should wait at least a year or two of before trying a new service? By then the worst of them will have crashed or be found out.
This will not be the last time it happens. With llm coding, I think there will be dozens similar to this in a few years