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SELECT customers with AT&T could get money from a data breach settlement soon.
The direct payment opportunity comes after an investigation by the Federal Communications Commission (FCC).
AT&T has agreed to pay $13 million in a data breach settlement[/caption]
Hackers took sensitive information from around nine million customers (stock image)[/caption]
AT&T was accused of failing to protect customers’ data when its cloud vendor was hacked in January 2023, per a statement from the FCC on Tuesday.
The FCC claimed the telecommunications company neglected to secure the information it shared with the undisclosed cloud vendor and did not confirm that the vendor later returned or deleted it as required in its contract.
That included billing information and the number of phone lines on customers plans from 2015 to 2017.
It did not include customers’ Social Security numbers, bank details, or account passwords.
Still, the sensitive data for around nine million AT&T Mobility customers was exposed in the breach, per BNN Bloomberg.
Jessica Rosenworcel, Chairwoman for the FCC, emphasized the commission’s commitment to cracking down on cellular carries that do not protect customers’ data.
“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 said in Tuesday’s statement.
“Carriers must take additional precautions given their access to sensitive information, and we will remain vigilant in ensuring that’s the case no matter which provider a customer chooses.”
PROVISIONS PROMISED
While AT&T has not admitted any wrongdoing, it agreed to settle for an amount of $13 million to resolve the FCC claims.
It also agreed as part of the settlement to improve its data governing practices and include specific procedures to handle the information moving forward, which will likely cost considerably more than the $13 million, per an official filing.
“Protecting our customers’ data remains one of our top priorities,” an AT&T spokesperson told CBS News regarding the settlement.
“Though our systems were not compromised in this incident, we’re making enhancements to how we manage customer information internally, as well as implementing new requirements on our vendors’ data management practices.”
Those who were AT&T Mobility customers in January 2023 could be eligible for a settlement payment.
No proof would be required as the company will already know of those affected on file and likely send out class member information.
What's a class-action settlement?
Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
BREACH AFTER BREACH
The $13 settlement agreement also comes on the heels of another massive data breach for AT&T in July.
It happened through another cloud platform called Snowflake Inc, and allegedly exposed text and call data for nearly all of AT&T’s customers for several months during 2022.
In March, a dark-web leak also lead to the Social Security numbers and account passcodes of 73 million AT&T customers.
Other cellular carriers are also facing struggles.
Verizon’s $100 million class action surcharge settlement has yet to see funds distributed to customers after delays.
Several T-Mobile customers have also claimed they were overcharged upwards of $5,000 recently on bills.
