T-MOBILE customers hit by a massive data breach are finally getting cash compensation – with some cheques worth up to £20,000.
The payments are part of a $350million (£275million) settlement after hackers accessed private information of around 76 million users in a 2021 cyberattack.
Payout amounts vary by state[/caption]
Victims in the UK and across the US had names, addresses, dates of birth, Social Security numbers, and even driving licence details exposed.
The breach, which occurred in August 2021, triggered a class-action lawsuit in the United States, where affected customers accused the mobile giant of failing to protect sensitive data with adequate cybersecurity measures.
While T-Mobile admitted no wrongdoing, it agreed to the multi-million dollar settlement to avoid further legal costs.
Customers eligible for the settlement were notified some time ago and had to file claims by the January 2023 deadline.
Those who provided documents proving identity theft or significant financial loss as a result of the breach could claim up to $25,000.
However, not everyone qualifies for the top payout.
Most customers who didn’t suffer direct financial harm – or couldn’t prove it – are receiving much less.
“People who had to pay money to clear their name or their credit are getting much more,” said Bentley University professor Steve Weisman.
“Everyone else is only getting a pittance.”
Payout amounts vary by state.
California residents are receiving $100, while those in Rhode Island are getting just $25.
And with so many eligible claimants, some people may only see cheques as low as $4.50 once the money is divided.
Even so, there’s a chance for some customers to receive a bit more.
“After these initial payments are made, if there is money left, everyone who was a victim of the scam will get an additional amount spread out equally among the victims,” Weisman explained.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
The money is now being distributed following months of delay.
Payments, originally promised for April, were pushed back without a clear explanation.
Now, cheques and direct deposits are finally reaching bank accounts, depending on how claimants chose to be paid.
T-Mobile customers are urged to be cautious.
Scammers are already using the settlement news to try and trick people.
Weisman warned: “If you receive an email or a text asking for additional information in relation to this settlement, it’s likely a scammer trying to capitalise on the news.”
As part of the agreement, affected customers were also given two years of free identity protection services via Pango.
These include TransUnion credit monitoring, dark web tracking, and up to $1 million in identity theft insurance.
The settlement doesn’t just offer cash – it’s a sharp reminder for major companies to invest more heavily in cybersecurity.
At the time of the breach, T-Mobile CEO Mike Sievert admitted the company had failed to live up to expectations.
“Knowing that we failed to prevent this exposure is one of the hardest parts of this event,” he said.
Although the deadline to file a claim has passed, consumers should remain alert.
Identity protection services are still active, and anyone who suspects their data may have been affected is advised to monitor their accounts and credit reports closely.
For full details, and to check the status of your claim, visit the official T-Mobile settlement website.
Wilson, NC / March 29, 2018: A T Mobile wireless service location is open in Wilson, North Carolina.[/caption]
