Telecom provider T-Mobile has reached a settlement in the United States with the victims of a major data breach that occurred last year in which the personal data of 79 million current and former American customers was stolen. This included names, dates of birth, social security number and driver’s license information, as well as telephone numbers and IMEI and IMSI information. The data was then offered for sale on the Internet.
Duped customers decided to start dozens of mass claims against T-Mobile. For example, customers say that T-Mobile has not properly protected their data and that they are therefore at “significant risk”. The leaked data could, for example, be used for identity fraud, the complainants say. They also claim that they spent hours resolving the privacy risks of the attack.
In all cases, the customers demand compensation. T-Mobile has decided to settle the mass claims now for an amount of 350 million dollars. That money will go to a fund to compensate affected customers, as well as to pay attorney and administrative fees. In addition, the telecom provider has agreed to spend $150 million on data security and related technology this year and next. The judge still has to approve the settlement proposal.