T-Mobile customers affected by the 2021 data breach are finally receiving compensation following a $350 million settlement. The breach, which exposed personal data like names, addresses, dates of birth, and Social Security numbers, led to a class-action lawsuit accusing the mobile giant of inadequate cybersecurity measures. While T-Mobile admitted no wrongdoing, it agreed to the settlement to avoid further legal costs.
Settlement Details
The settlement, which is now being distributed, provides affected customers with compensation, but the payout amounts vary depending on the level of harm experienced. Those who provided evidence of identity theft or significant financial loss due to the breach may receive up to $25,000. However, most customers who didn’t suffer direct financial harm will receive much smaller amounts.
Payouts by State and Qualification
- California residents are set to receive $100.
- Rhode Island residents are receiving just $25.
- Some claimants may receive payouts as low as $4.50, depending on how many people filed claims and how the funds were distributed.
Despite the low amounts for many, there is still a chance that customers will receive additional payments. As Bentley University professor Steve Weisman explained, if there is money left after the initial payouts, it will be divided equally among all affected victims.
Delay in Payment Distribution
Payments, originally promised for April, were delayed for several months without a clear explanation. However, the checks and direct deposits are now being sent, depending on how claimants chose to receive their payment.
Warning About Scams
As news of the settlement spreads, scammers are already using the opportunity to exploit victims. Professor Weisman cautioned that if customers receive unsolicited emails or texts asking for additional information related to the settlement, they should avoid responding, as these are likely scams.
Identity Protection Services
As part of the settlement, all affected customers were also given two years of free identity protection services through Pango. This includes:
- TransUnion credit monitoring
- Dark web tracking
- Up to $1 million in identity theft insurance
These services are still active, and customers are encouraged to continue monitoring their accounts and credit reports closely.
T-Mobile’s Accountability and Lessons Learned
The breach, which exposed millions of customer records, was a significant failure for T-Mobile in terms of cybersecurity. T-Mobile CEO Mike Sievert admitted that the company failed to prevent the exposure, calling it “one of the hardest parts of this event.”
While the settlement addresses some of the damages caused by the breach, it serves as a reminder for companies to invest heavily in cybersecurity to protect consumer data.
Though the T-Mobile settlement provides some compensation to affected customers, many are left with small payouts for the breach that exposed their sensitive information. While the initial payments are being made, customers are encouraged to stay alert to scams and continue to monitor their credit. The two years of free identity protection services are an added benefit, ensuring that victims have some level of security in the aftermath of the breach.
