BIG MONEY: AT&T customers will get payment from $13 million data breach settlement -and you don’t need to show any proof
According to THE SUN, AT&T customers could soon receive payments from a data breach settlement, following an investigation by the Federal Communications Commission (FCC).
The Breach and Its Impact
The FCC revealed on Tuesday that AT&T failed to adequately protect customer data when its cloud vendor was hacked in January 2023. The breach exposed sensitive information for around nine million AT&T Mobility customers. This data included billing information and details about the number of phone lines on customer plans from 2015 to 2017. However, it did not involve Social Security numbers, bank details, or account passwords.
The FCC’s investigation found that AT&T neglected to secure the data shared with the cloud vendor and did not ensure the vendor properly handled or deleted the information as required by their contract.
FCC Chairwoman’s Statement
Jessica Rosenworcel, Chairwoman of the FCC, stressed the commission’s dedication to enforcing data protection standards for cellular carriers. “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 emphasized that carriers must implement additional precautions due to their access to sensitive information and assured that the FCC will remain vigilant in enforcing these standards.
Settlement Details
Although AT&T has not admitted any wrongdoing, the company agreed to settle the claims for $13 million. In addition to the financial settlement, AT&T has committed to enhancing its data governance practices and establishing new procedures for managing customer information. These improvements are expected to involve costs beyond the settlement amount, according to official filings.
An AT&T spokesperson commented, “Protecting our customers’ data remains one of our top priorities. Though our systems were not compromised in this incident, we’re making enhancements to how we manage customer information internally and implementing new requirements on our vendors’ data management practices.”
Payment Process for Affected Customers
Customers who were AT&T Mobility users in January 2023 may be eligible for a settlement payment. There is no need for proof of the breach as AT&T will use its records to identify affected individuals and send out class member information directly.
Additional Data Breaches and Ongoing Issues
This settlement follows another significant data breach for AT&T that occurred in July through a different cloud platform, Snowflake Inc. This breach allegedly exposed text and call data for nearly all of AT&T’s customers for several months during 2022. Additionally, a dark-web leak in March exposed Social Security numbers and account passcodes for 73 million AT&T customers.
Other cellular carriers are also facing their own challenges. Verizon is still dealing with delays in distributing funds from a $100 million class action surcharge settlement. Meanwhile, several T-Mobile customers have reported being overcharged by up to $5,000 recently.
