T-Mobile will pay $350 million in settlement following the 2021 hack, which exposed 76.6 million US residents’ data.
Back in August 2021, T-Mobile reported a data breach after an online forum said that the personal data of more than 100 million of the company’s users was leaked.
The breached data (which came from T-Mobile’s servers) included not only names and phone numbers but also more sensitive data such as social security numbers, driver's license information, and unique mobile device identifiers (IMEI numbers.) A portion of it was being sold online for six bitcoin.
As a result, T-Mobile was accused of failing to protect its customers and notify them of the breach, as well as having poor cybersecurity policies in place.
"This has become an all too common occurrence for companies worldwide. Companies need to take immediate action to prevent such breaches, but they can't do it alone. (...). Recent attacks only highlight that a collective effort is needed to combat the risk posed by cybercriminals," Ric Longenecker, CISO at Open Systems, told Cybernews.
Out of the proposed settlement, $350 million will be allocated to lawyers, fees, and victims who filed claims. Another $150 million must be spent on data security.
The company will have 10 days to put the money in the fund to notify “approximately 76.6 million U.S. residents identified by T- Mobile whose information was compromised in the Data Breach” if the settlement gets approved in court. It is yet unclear how big the individual settlements will be.
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