T-Mobile agrees to settle $500M over massive 2021 hack
The massive 2021 hack involving T-Mobile’s customers finally comes to an end. Today, the Un-carrier has agreed to settle the class-action lawsuit from the hack by paying $500 million.
The proposed agreement filling entails T-Mobile will be paying $350 million as settlement fund for lawyers, fees, and to the people who filed claims. The remaining $150 million will be spent to improve its “data security and related technology” for 2022 and 2023.
The 2021 hack exposed the data of around 76.6 million customers. Among the data that was collected in the breach are their names, addresses, driver’s license information, and Social Security numbers.
Following the breach, it was reported that the information of over 100 million T-Mobile customers were offered for sale. While this is slightly inflated, the number of affected customers continued to increase in August 2021. The CEO of the company referred to this security breach as a “humbling” experience.
As of this writing, a judge still needs to approve the proposed settlement. If it gets approved, T-Mo will have 10 days to put money in the fund so that people eligible to claim from it can be notified. This means that around 76.6 million US residents whose information was compromised are entitled to the settlement.
The report does not detail the exact figures on how much claimants can receive. You can read more about the report here.
Source: The Verge