Millions of AT&T Customers to Receive Compensation in $177 Million Settlement After Massive Data Breach

AT&T announced two data breaches in 2024 that impacted millions of users. The breach exposed nearly all of its cellular customers. Now, the company will shell out up to thousands of dollars to impacted customers in a $177 million settlement.

The First Breach

In March 2024, AT&T announced a data breach that impacted about 73 million of its customers. The breach exposed both current and former account holders’ personal information, including birth dates and Social Security numbers, which were found shared on the dark web.

The Second Breach

In a second worrisome breach in July 2024, the company announced that hackers had illegally downloaded more AT&T data from its third-party cloud platform. This breach released records of calls and texts from almost all of its customers.

The Class Action Lawsuit

There were several suits filed in both state and federal courts, which have now been consolidated into one class action lawsuit. The company proposed a settlement of $177 million to compensate the thousands (if not millions) of customers who were impacted by the breach. The settlement proposal still needs to be officially approved.

How Much Will Recipients Receive?

The compensation amounts will vary. Those involved in the first breach in March may be eligible for as much as $5,000, while those involved in the second breach may be eligible for up to $2,500. Those involved in both beaches may be eligible for up to $7,500.

Proof for Claims

Customers will be asked to provide proof in order to receive their settlements. This may be in the form of receipts or documents that prove the individual was a customer during the time of the breach.

When Can Recipients Expect Payment?

The date of payment is not yet decided, as the court must first approve the settlement proposal put forth by AT&T. That decision will be made on December 3 in a court hearing. However, appeals after the initial court date could take longer.

How to Find Out if You’re Eligible

Any customers whose data was breached in either of the breaches will be eligible to file a claim for compensation. The company is sending a notice to customers who qualify through email. For questions about qualifications, customers can call (833) 890-4930. 

Concerns With Data Breaches

Data breaches can lead to financial losses, identity theft, reputation damage, loss of intellectual property, and more. These risks are worrisome for customers, which is why class action settlements seek to compensate them when these incidents occur.

Conclusion

Data breaches can occur for a plethora of reasons, from malware and human error to fraud, system vulnerabilities, and phishing scams. It is important that companies with millions of customers protect consumer information to avoid these breaches.