AT&T customers will get payment from $13 million data breach settlement -and you don’t need to show any proof
Customers with AT&T could be eligible for compensation from a recent data breach settlement. This opportunity for direct payments follows an investigation conducted by the Federal Communications Commission (FCC).
Investigation and Allegations
AT&T faced accusations of failing to adequately protect customer data when a cloud vendor was hacked in January 2023, according to a statement released by the FCC on Tuesday. The FCC asserted that the telecommunications giant neglected to secure the information shared with the unnamed cloud vendor and did not confirm whether the vendor returned or deleted the data as stipulated in their contract.
The breach involved billing information and the number of phone lines on customer plans from 2015 to 2017. Notably, it did not include sensitive information such as Social Security numbers, bank details, or account passwords. However, the data of approximately nine million AT&T Mobility customers was exposed during the incident, as reported by BNN Bloomberg.
Jessica Rosenworcel, Chairwoman of the FCC, reiterated the commission’s dedication to holding cellular carriers accountable for customer data protection. “The Communications Act makes clear that carriers have a duty to protect the privacy and security of consumer data, and that responsibility takes on a new meaning for digital-age data breaches,” Rosenworcel stated.
Settlement Agreement and Provisions
While AT&T has not admitted to any wrongdoing, the company agreed to a settlement of $13 million to resolve the claims made by the FCC. As part of the settlement, AT&T committed to improving its data governance practices and implementing specific procedures for handling customer information going forward. This enhancement is expected to incur costs exceeding the $13 million settlement, according to official filings.
“Protecting our customers’ data remains one of our top priorities,” an AT&T spokesperson told CBS News regarding the settlement. “Though our systems were not compromised in this incident, we’re making enhancements to how we manage customer information internally, as well as implementing new requirements on our vendors’ data management practices.”
Who Is Eligible for Compensation?
Those who were AT&T Mobility customers in January 2023 may be eligible for a settlement payment. Importantly, no proof of eligibility will be required, as AT&T is expected to have the necessary information on file and will likely send out notifications to affected class members.
Ongoing Data Breach Issues
The $13 million settlement follows another significant data breach involving AT&T in July, which occurred through a different cloud platform, Snowflake Inc. This breach allegedly exposed text and call data for nearly all AT&T customers for several months during 2022. Additionally, in March, a dark web leak revealed Social Security numbers and account passwords for 73 million AT&T customers.
Other cellular carriers are also grappling with challenges. For instance, Verizon’s $100 million class action surcharge settlement has yet to distribute funds to affected customers due to delays. Moreover, several T-Mobile customers have reported being overcharged up to $5,000 on their recent bills.
