CLOUD CONCERN: 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, Select customers with AT&T could soon receive payments from a data breach settlement following an investigation by the Federal Communications Commission (FCC). This opportunity for direct compensation comes after allegations that AT&T failed to adequately protect its customers’ data when its cloud vendor was hacked in January 2023.
Allegations of Data Mismanagement
According to the FCC, AT&T neglected to secure the information shared with the undisclosed cloud vendor and did not verify whether the vendor returned or deleted this information as required by their contract. The compromised data included billing information and the number of phone lines on customer plans from 2015 to 2017. However, it did not contain customers’ Social Security numbers, bank details, or account passwords. Approximately nine million AT&T Mobility customers had their sensitive data exposed in this breach, as reported by BNN Bloomberg.
Jessica Rosenworcel, Chairwoman of the FCC, stressed the commission’s commitment to holding telecommunications companies accountable for protecting customer data. She stated, “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 in the digital age.”
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Settlement Terms
While AT&T has not admitted any wrongdoing, the company has agreed to a $13 million settlement to resolve the FCC claims. Additionally, AT&T committed to improving its data governance practices and implementing specific procedures for handling customer information moving forward, which will likely incur costs exceeding the settlement amount.
“Protecting our customers’ data remains one of our top priorities,” an AT&T spokesperson told CBS News. They added that although their systems were not compromised in this incident, the company is enhancing its internal data management practices and instituting new requirements for vendor data management.
Who Is Eligible for Compensation?
AT&T Mobility customers who were affected in January 2023 may be eligible for settlement payments. Importantly, no proof of purchase will be required, as AT&T will have the necessary information on file to identify affected customers and likely send out class member notifications.
Recent Breaches and Ongoing Issues
This $13 million settlement comes on the heels of another significant data breach for AT&T in July 2023, which allegedly exposed text and call data for nearly all of AT&T’s customers for several months during 2022. Additionally, in March, a dark-web leak revealed the Social Security numbers and account passcodes of 73 million AT&T customers.
Other cellular carriers are also facing challenges related to data security. Verizon’s $100 million class action surcharge settlement has yet to distribute funds to customers due to delays, while several T-Mobile customers have reported being overcharged upwards of $5,000 on their bills recently.
