AT&T pays $177 million in data breach settlement
AT&T will pay a $177 million class action lawsuit settlement following two alleged data breaches that exposed sensitive customer data on the dark web.
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AT&T customers could be eligible to receive up to $7,500 from the telecommunications giant as part of a $177 million class action settlement.
The settlement is the result of a lawsuit alleging that the company failed to protect its customers’ vulnerable data, leading to two separate data breach incidents in 2024.
In the first incident, which occurred on March 30, 2024, AT&T announced that customer information, including addresses, social security numbers, and passcodes, was published on the dark web, according to the payments website.
On July 12, 2024, AT&T announced a second incident in which customer call and text message records were illegally downloaded.
AT&T does not dispute that a data breach occurred, but denies data mishandling or wrongdoing, according to a Kroll Payments Authority news release. In a statement to USA TODAY, AT&T said it is “committed to protecting our customers’ data and ensuring their continued trust in us.”
Here’s what you need to know about settlements.
Who is eligible to file a claim in AT&T’s data breach settlement?
There are two settlement classes, or groups of eligible customers, who can file claims.
The first class of eligible claimants includes AT&T customers affected by the March 30, 2024 data breach. The second class includes those who were included in the incident announced on July 12, 2024. Some customers may be eligible for membership in both classes.
The breach is believed to have affected more than 7 million people who had AT&T accounts in 2024 and more than 65 million people who had AT&T accounts between 2019 and 2024, according to the complaint and AT&T’s 2024 statement.
Customers who are unsure whether their payment is included should call 833-890-4930.
When is the deadline to file a claim?
The deadline to file a claim is Tuesday, November 18th. Online forms must be submitted by that date. Requests sent by mail must be postmarked.
How to file a claim in the AT&T settlement
AT&T customers eligible for the settlement can submit claims online at www.telecomdatasettlement.com.
Claims may also be mailed to AT&T Data Incident Settlement, Attention: Kroll Settlement Administration LLC, PO Box 5324, New York, NY 10150-5324.
How much money can claimants receive?
Eligible claimants can receive up to several thousand dollars, depending on which settlement class they belong to.
Customers affected by the initial data incident can claim up to $5,000 through a cash payment option for documented losses. This means you will need to provide documentation of your loss.
Alternatively, members of the first payment class may choose Tier 1 or Tier 2 cash payments.
Anyone whose Social Security number was included in the March 30 data breach can file a claim against Tier 1. Customers whose data, but not their Social Security number, was involved in the breach can apply for Tier 2. Tier 1 payouts are 5 times more than Tier 2.
Customers affected by a second data breach also have a cash payment option for documented losses of up to $2,500. You can also choose the Tier 3 cash payment option. This will form part of the settlement after administrative costs and insurance claims are made.
Customers affected by both data breaches could receive up to $7,500, according to the settlement website.
Contributor: Taylor Ardley, USA TODAY
Melina Khan is USA TODAY’s national trends reporter. Contact her at melina.khan@usatoday.com.
Gabe Hauari is USA TODAY’s national trends news reporter. You can follow him at X @gabehauari Or email Gdhauari@gannett.com.
