T-Mobile To Pay Out $500M Settlement After Massive Data Breach

Users of T-Mobile would’ve remembered the huge data breach the company faced almost a year ago, when the firm reported it was investigating claims a hacker got into the information of over 100 million customers.

Now, despite refusing to admit any wrongdoing, the carrier has agreed to pay out a US$500 million settlement, of which US$350 million will go to a fund for affected users, and “at least US$150 million” that will be put to enhancing its security measures. 

T-Mobile had previously released a statement saying it was “doubling down” on protecting customers’ data following the incident, including starting a Cybersecurity Transformation Office, linking up with other privacy firms, increasing employee training, and investing “hundreds of millions of dollars” to boost its infrastructure. 

According to Ars Technica, affected customers will receive their share of the settlement via an independent third-party administrator, to whom the company will have 10 days to send the funds to once those eligible have been notified to file claims, pending a judge’s ruling. 

At the moment, it’s unclear exactly how much each customer is entitled to in the payout, though the firm will be setting up a toll-free number and website to handle any queries related to the matter. 

“As we continue to invest time, energy, and resources in addressing this challenge, we are pleased to have resolved this consumer class-action filing, T-Mobile concluded in a statement. 

[via Ars Technica and CNET, cover image via Mesutdogan | Dreamstime.com]