AT&T may pay customers up to $7,500 in $177 million data breach settlement


Millions of AT&T customers can file claims value up to $7,500 in money funds as a part of a $177 million settlement associated to data breaches in 2024.

The telecommunications firm had confronted a pair of data breaches, introduced in March and July 2024, that have been met with lawsuits.

Here’s a breakdown.

On March 30, 2024, AT&T announced it was investigating a data leak that had occurred roughly two weeks prior. The breach had affected data till 2019, together with Social Security numbers, and the data of 73 million former and present customers was discovered in a dataset on the darkish net.

Four months later, the corporate blamed an “illegal download” on a third-party cloud platform that it discovered about in April for a separate breach. This leak included phone numbers of “nearly all” of AT&T mobile customers and customers of suppliers that used the AT&T community between May 1 and October 31, 2022, the corporate mentioned.

The class-action settlement features a $149 million money fund for the primary breach and a $28 million payout for the second breach.

AT&T customers whose data was concerned in both breach, or each, will probably be eligible. Customers eligible to file a declare will obtain an e mail discover, in accordance to the settlement website.

AT&T mentioned Kroll Settlement Administration is notifying present and former customers.

The deadline to submit a claim is November 18. The last approval listening to for the settlement is December 3, in accordance to the settlement web site, and there may very well be appeals following an approval “and resolving them can take time.”

“Settlement Class Member Benefits will begin after the Settlement has obtained Court approval and the time for all appeals has expired,” the web site states.

Customers impacted by the March incident are eligible for a money fee of up to $5,000. Claims should embody documentation of losses that occurred in 2019 or later, and which can be “fairly traceable” to the AT&T breach.

For the breach introduced in July, money funds go up to $2,500. Documentation is required for “losses that occurred on or after April 14, 2024.”

A buyer affected by each breaches may very well be eligible for up to $7,500, however documentation for every loss should be distinctive, in accordance to the web site.

Alternatively, customers can file a declare for a tier money fee. According to the settlement web site, anybody whose Social Security Number was uncovered in the March breach would obtain 5 instances the fee of the second tier, together with anybody who had one other data component uncovered. Anyone impacted by the second breach would obtain an equal share of remaining funds.

However, there’s no assure that customers would get a considerable payout.

“The amount of money that will be available for Settlement Class Member Cash Payments is unknown at this time,” in accordance to the settlement web site.

How has AT&T responded?

AT&T mentioned in an announcement that it denies allegations from the lawsuits that it was accountable “for these criminal acts” from the date breach, however “agreed to this settlement to avoid the expense and uncertainty of protracted litigation.”

“We remain committed to protecting our customers’ data and ensuring their continued trust in us,” the corporate wrote.

In 2024, an AT&T spokesperson informed NCS that the March breach had “no connection in any way” to the July announcement.

AT&T mentioned it expects the settlement will probably be authorized by the tip of the 12 months.