By Robert Thorpe
Senior Editor
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In August 2021, T-Mobile experienced a significant data breach that compromised the personal information of approximately 76 million customers. As a result, the company agreed to a $350 million settlement, and payments will start going out in April.
Newsweek reached out to T-Mobile via email for comment on Wednesday.
Why It Matters
Data breaches pose serious risks to personal privacy and financial security. In August 2021, T-Mobile disclosed a cyberattack that compromised the personal data of millions of current, former and prospective customers. According to the complaint, the breach exposed sensitive information, including names, addresses, dates of birth, Social Security numbers and driver's license details. Such exposure can lead to identity theft and financial fraud, underscoring the importance of robust cybersecurity measures.
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What to Know
To address the fallout from the breach, T-Mobile agreed to a $350 million settlement to compensate affected customers and cover legal fees associated with the class action lawsuit. However, the wireless network operator did not admit to any wrongdoing.
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Individuals eligible for compensation include those identified by T-Mobile as having their information compromised in the breach. Notices were sent to affected customers, but eligibility can be confirmed by contacting the settlement administrator at 1-833-512-2314 or visiting the official settlement website.
According to the final approval order, affected customers who incurred out-of-pocket expenses due to the breach, such as costs related to identity theft or credit monitoring services, can claim up to $25,000. There is also an alternative cash payment of $25 available or $100 for residents of California at the time of the breach. Additionally, T-Mobile is offering two years of free identity theft protection services and two years of restoration services to affected customers.
The compensation is available to affected customers who can prove documented losses directly related to the breach, such as identity theft, fraudulent charges or expenses for credit monitoring services.
If you received a notification from T-Mobile confirming that your data was compromised, you should gather receipts, bank statements or any official documentation that supports your claim.
The deadline to submit claims was January 23, 2023. Claims could be filed online through the official settlement website or by mailing a completed claim form to the settlement administrator.
Payments are expected to start being sent out in April, according to an update on the settlement website.
What People Are Saying
Washington Attorney General Bob Ferguson stated in a press release in January: "This significant data breach was entirely avoidable. T-Mobile had years to fix key vulnerabilities in its cybersecurity systems — and it failed."
Attorney Robert Clore told the St. Louis-based 8th U.S. Circuit Court of Appeals: "This is exactly the kind of case that causes the public to scoff at class actions. My client gets 25 bucks and these attorneys are walking away with $7,000 to $10,000 per hour."
What Happens Next
The distribution of settlement payments is scheduled to begin in April. Affected customers who submitted valid claims can expect to receive their compensation during this period. T-Mobile has also committed to investing $150 million in data security and related technologies to prevent future incidents.
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