Another security gaffe is paying off for users, as T-Mobile has officially agreed to give money to customers who were affected by a data breach that occurred in 2021.
Security breaches are certainly nothing new to the business world and neither are class action lawsuits. Scores of companies have had to pay customers for one mistake or another, and even more have fallen victim to hackers in the last few years.
Now, it appears the two are combining to the benefit of customers, with T-Mobile settling a case that would put dollars in users pockets.
T-Mobile Settles Class Action Lawsuit
According to an SEC filing spotted by GeekWire, T-Mobile has settled a class action lawsuit to the tune of $350 million. The filing noted that T-Mobile experienced a security breach that caused “certain information about a number of the Company’s current, former, and prospective customers” to be compromised.
“[The settlement] will resolve substantially all of the claims brought by the Company’s current, former and prospective customers who were impacted by the 2021 cyberattack,” read the filing from the SEC.
Considering T-Mobile has 76 million users that fall within this category, it's safe to say this security breach had far reaching implications in regard to the privacy of their users. The security breach reportedly made information like names, dates of birth, and even Social Security numbers vulnerable to the cyber attack.
How Much Will You Get From T-Mobile?
If you're hoping for a big payout due to this security breach, you are out of luck. While some payouts of big tech class action lawsuits have paid off, like Illinois residents receiving nearly $400 because of Facebook's improper storage of biometric data, T-Mobile users simply won't be that lucky.
With more than 76 million users and the cost of high-priced lawyers, the amount of money left to everyday customers is likely going to be paltry. Reports have shown that likely payouts are going to be in the single or double digits, with customers receiving around $5-10 at most. Even worse, you likely aren't going to receive payment, or even know if you're eligible to receive payment, until around December 2022.
Rather than waiting on your big pay day, your time might be better spent shoring up your online security to ensure this kind of thing doesn't have more drastic consequences. A password manager can be a great place to start, as passwords are your first line of defense against hackers. Antivirus software can also help, detecting malware on your devices and irradicating it when necessary. Simply put, it's better to be proactive about your online security, rather than waiting for meager payouts when things go sideways.