Data breach settlement of $177 million sees AT&T potentially compensating customers up to $7,500 each

Data breach settlement of $177 million sees AT&T potentially compensating customers up to $7,500 each

The telecommunications giant, AT&T, has reached a settlement following two significant data breaches disclosed in 2024. Here's an overview of the breaches, eligibility, claim process, and potential payouts for affected customers:

Overview of the Breaches

• First Breach (March 2024): This breach involved the leak of personal information, including Social Security numbers and birth dates, for about 73 million current and former AT&T account holders. The compromised data was found on the dark web.
• Second Breach (July 2024): This breach exposed the call and text message records of nearly all AT&T cellular customers for a specific period. While it did not include personally identifiable information like Social Security numbers, it may have included phone numbers that could be linked to customers through public data.

Eligibility

• Eligible Parties: Customers whose data was compromised in either or both breaches are eligible for compensation.
• Claim Requirements: To qualify, claimants must submit a valid claim form by November 18, 2023.

Claim Process

1. Submission: Claim forms must be submitted by the deadline of November 18, 2023.
2. Documentation: Claimants who can document losses may receive higher compensation. For those without documented losses, payments will be distributed proportionally.
3. Tiered Payments: Payments are tiered based on the breach and documented losses. Exact amounts depend on the number of claims filed.

Potential Payouts

• First Breach: Up to $5,000 for documented losses or tiered payments.
• Second Breach: Up to $2,500 for documented losses or tiered payments.
• Both Breaches: Up to $7,500 for those affected by both breaches.

Final Approval and Appeals

• Final Hearing: The settlement is awaiting final approval on December 3, 2023.
• Potential Appeals: Even if approved, there could be appeals, which would delay payment distributions.

Steps to File a Claim

1. Visit the Settlement Website: Access the official AT&T data breach settlement website.
2. Gather Required Information: Collect necessary documents to support your claim.
3. Submit the Claim Form: Complete and submit the claim form by the deadline of November 18, 2023.

Customers impacted by either breach will receive an email notice regarding the claim process. For those who are unsure about eligibility or need assistance, it's advisable to review the settlement terms and contact the settlement administration for guidance.

Anyone whose Social Security Number was exposed in the March breach would receive five times the payment of the second tier. Claims for the March breach must include documentation of losses that happened in 2019 or later and are "fairly traceable" to the AT&T breach.

For the breach announced in July, cash payments go up to $2,500. Eligible customers will receive an equal share of remaining funds if their claims are not tied to documented losses. Documentation for each loss must be unique for customers affected by both breaches.

AT&T denies allegations from the lawsuits that it was responsible for the data breaches but agreed to the settlement to avoid litigation. Settlement payouts will begin after the settlement receives court approval and the time for all appeals has expired.

1. The settlement for the AT&T data breaches is significant, involving both business finance and cybersecurity discussions as the company aims to compensate affected customers, with potential payouts up to $7,500 for those impacted by both breaches.
2. As technology has played a crucial role in the data breaches that occurred at AT&T, the subsequent claim process and potential payouts underline the importance of robust technology and cybersecurity measures in protecting sensitive customer information.

Read also: