Sunday, July 14, 2024

T-Mobile Pitches $4-Per-Customer Settlement for DataLeak Impacting 80M People

After leaking 80 million US customer data records in a cyberattack last summer, T-Mobile offers to settle a wide-ranging class action suit for just $350 million.

Names, driver’s licenses, and even Social Security numbers of more than 80 million T-Mobile customers in the US were compromised in a cyberattack last summer. Now T-Mobile is offering the victims a settlement in a class-action lawsuit stemming from the breach. It’s cold comfort to victims, though — the compensation works out to just over $4 per person.

In a filing with the US Securities and Exchange Commission (SEC), the company said it would pay $350 million to fund customer claims, and pick up the attorneys’ fees and administrative costs of handling the payouts. The mobile carrier also pledged to invest an additional $150 million in cybersecurity through 2023.

Altogether the company said the settlement offer would cost T-Mobile $400 million in the second quarter of 2022. To put that in perspective, T-Mobile’s US revenue for the 12 months ending March 31 was $80.5 billion, a 4.46% increase year-over-year.

The T-Mobile SEC filing added that the settlement doesn’t come with any admission of liability, wrongdoing, or responsibility on the part of the company, and added that T-Mobile expects to receive court approval of the settlement terms by as early as December.

The proposed penalty is in line with similar data breach settlements, like the $190 million settlement Capital One reached for leaking 100 million credit card applications from the US and another 6 million from Canada in a 2019 cyberattack — less than $2 per victim.

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As a financial institution, Capital One was also ordered to pay an $80 million fine to Federal Reserve regulators. Both sums are a drop in the bucket for the corporate giant. Capital One’s annual net income for 2021 was $12 billion, a 403.79% increase from 2020.

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  • Globally, 30,000 websites are hacked daily.
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  • There were 20M breached records in March 2021.
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Steven Black (n0tst3)
Hello! I'm Steve, an independent security researcher, and analyst from Scotland, UK. I've had an avid interest in Computers, Technology and Security since my early teens. 20 years on, and, it's a whole lot more complicated... I've assisted Governments, Individuals and Organizations throughout the world. Including; US DOJ, NHS UK, GOV UK. I'll often reblog infosec-related articles that I find interesting. On the RiSec website, You'll also find a variety of write-ups, tutorials and much more!

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