Big Update: AT&T customers will get payment from $13 million data breach settlement -and you don’t need to show any proof
AT&T customers could soon receive compensation from a data breach settlement resulting from an investigation by the Federal Communications Commission (FCC). The investigation revealed that AT&T failed to adequately protect customer data after a hack involving its cloud vendor in January 2023.
Background on the Data Breach
According to the FCC, AT&T neglected to secure the information shared with the unnamed cloud vendor and did not verify that the vendor had returned or deleted customer data as required by contract. The breach exposed sensitive billing information and the number of phone lines on customer plans dating from 2015 to 2017. Fortunately, no Social Security numbers, bank details, or account passwords were compromised. Nevertheless, around nine million AT&T Mobility customers were affected by this incident, as reported by BNN Bloomberg.
FCC’s Commitment to Data Protection
Jessica Rosenworcel, Chairwoman of the FCC, emphasized the agency’s dedication to holding telecommunications companies accountable for safeguarding customer data. “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 the digital age data breaches,” Rosenworcel stated. She also noted that carriers must implement additional precautions given their access to sensitive information, and the FCC will ensure compliance across all providers.
Settlement Details
While AT&T has not admitted to any wrongdoing, the company agreed to settle the claims for $13 million. As part of the settlement, AT&T will enhance its data governance practices and implement specific procedures for handling customer information moving forward. This commitment will likely involve costs exceeding the $13 million settlement amount, 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.”
Eligibility for Settlement Payments
Customers who were AT&T Mobility users in January 2023 may be eligible for settlement payments. No proof will be required for affected individuals, as the company will have records on file and will likely send out information to class members.
Recent Data Breaches and Ongoing Issues
This $13 million settlement follows another significant data breach for AT&T that occurred in July, which involved a cloud platform called Snowflake Inc. This breach reportedly exposed text and call data for nearly all AT&T customers over several months in 2022. Additionally, in March, a dark-web leak compromised Social Security numbers and account passwords for 73 million AT&T customers.
Other telecommunications companies are also facing challenges; for example, 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 recently reported being overcharged up to $5,000 on their bills.
Also read: BIG NEWS: Social Security confirms no more SSI payments until October
