Upon approval, data breach victims will be compensated soon enough
It’s no secret that in 2021, T-Mobile disclosed a data breach that affected over 47 million existing & earlier customers. Soon after, hackers were able to retrieve the personal information of around 8 million postpaid users. It is clear from multiple sources that T-Mobile agreed to make the massive $350 million payout to bypass litigation. All the past & current customers are eligible for an equal share of this payout. This settlement would ensure that all the lawsuits related to the 2021 mishap get resolved.
The sensitive information of these users was stolen including names, social security numbers & other identity codes. It is to be noted that multiple class action lawsuits have been stacked to reach this huge settlement figure. The company has been handling cybersecurity issues poorly since 2015. Now the company has revealed plans of buffing up its cybersecurity department by investing $150 million.
What can victims expect?
Eligible members can opt for a cash payment of up to $25000 of out-of-pocket losses. They can also get paid for lost time at $25 an hour. Non-claimants are eligible for an alternative payout of $25 or $100 if they were in California on 1st August 2021. The company also offers free ID theft protection services to affected customers for two years.
This payout would be the 2nd biggest in US history, falling short of the 2017 Equifax data breach.
Claimants have to file their claim online by 23rd January 2023. Approved payments will be cleared within 90 days post-approval.
It is a positive outcome that T-Mobile has agreed to the payout, although they haven’t admitted any wrongdoing in this case. It remains to be seen whether or not the company practices what it has preached & developed its computer security systems in the coming years or if we see history repeating itself.