It seems that not a week goes by without news of a data breach, as companies struggle to keep up with threat actors infiltrating their systems and gaining access to private company data.
In the case of Webster Bank, the company experienced a data breach last year, via one of its third party vendors, Guardian Analytics, Inc., and a treasure trove of personal customer data was compromised.
As a result, a class action lawsuit was taken out against the company, which is due to close in the coming days, with customers affected eligible to claim from $25 up to $5,000. We explain how.
Webster Bank Settlement Explained
On April 10 2023, Webster Bank filed a report with the Maine Attorney General, stating that it had experienced a data breach, via third party vendor, Guardian Analytics, Inc. Included in the compromised information were customer names, social security numbers, and financial information. On the same day, it also sent letters out to affected customers.
According to the official filing, the number of affected customers was just shy of 200,000, and the breach took place sometime between November 2022 and January 2023.
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As a result of the data breach, a lawsuit was issued against Webster Bank, Guardian Analytics Inc, and Actimize, Inc, accusing them of failing to protect customer data. All three parties have agreed to settle by way of a pay out to those affected by the breach.
How Much Can I Receive from the Webster Bank Settlement?
A settlement fund of $1,430,207.50 has been agreed on, and how much each customer receives depends on how badly they have been affected by the breach. The pay outs are as follows:
- Up to 4 hours compensation, at $25 an hour, for any time spent by customers having to deal with issues resulting from the data breach.
- “Out-of-pocket expenses” up to $250 incurred as a result of the Data Incident. These are defined as things such as phone charges, petrol, postage, credit report fees, data charges, and bank fees.
- “Out-of-pocket expenses” up to $5,000 as a result of identify theft or fraud occuring as a result of the Data Incident, credit monitoring, or identify theft insurance purchased between November 27, 2022, and April 24, 2024.
- Customers who do not opt for the Alternative Cash Payment (detailed below) can receive 24 months of Credit Monitoring Services free of charge.
Those who don’t submit a claim for unreimbursed losses and lost time, can instead submit a claim to receive a pro rata cash payment from the settlement fund. These are two tiers to this pay out option, full details of which can be found on the official settlement site.
How To Claim in Webster Bank Settlement
If you want to make a claim in this settlement, and received a letter from Webster Bank informing you that you had been affected by the data breach, all you need to do is fill in the online form.
You can also download a paper form to fill out and post it to this address:
Webster Bank Data Incident Settlement Administrator
P.O. Box 2408
Portland, OR 97208-2408
The deadline for submitting claims is April 24, 2024, with the final approval scheduled for May 20th.
