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T-Mobile will pay out $350M to customers in data breach settlement

2022-07-26 18:49 by
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T-Mobile has agreed to a $350 million settlement in a class action suit that alleged it allowed sensitive information from millions of current, past and prospective customers to be stolen by hackers last year.

Back when T-Mobile's CEO, Mike Sievert, admitted and apologized for the breach, the carrier said the individual who hacked its network used "specialized" tools and knowledge of its infrastructure in order to gain access to its testing environment. That individual then stole customer data from the network and sold them on hacker forums.

More than 76 million US residents affected by the breach will be part of the proposed class, according to a court filing accompanying the settlement agreement. During its initial disclosures surrounding the breach, T-Mobile had said it believed a hacker had stolen information on about 53 million current, former or prospective customers.

All T-Mobile customer payouts from the proposed settlement will be disbursed through an independent third-party settlement administrator. The agreement says that T-Mobile will have 10 days to send funds to the settlement administrator to start the process of notifying everybody who has been deemed eligible to file claims.

The company, which merged with Sprint just before the breach, said in its SEC filing that it will be dedicating $150 million to improving its security.

Read more -here-

 

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