Tag Archive for: settlement

T-Mobile to pay $350 mln in settlement over massive hacking

/in


By Trend

T-Mobile US Inc agreed on Friday to pay $350 million and spend
an additional $150 million to upgrade data security to settle
litigation over a cyberattack last year that compromised
information belonging to an estimated 76.6 million people, Trend reports with reference to Reuters.

The preliminary settlement was filed with the federal court in
Kansas City, Missouri.

It requires a judge’s approval, which the second-largest U.S.
wireless carrier said could come by December.

T-Mobile denied wrongdoing, specifically, including accusations
that it breached its duties to protect customers’ personal
information and had inadequate data security.

The Bellevue, Washington-based company expects an approximately
$400 million pre-tax charge in this year’s second quarter for the
settlement. It said it contemplated the charge and $150 million of
spending in prior financial guidance.

T-Mobile disclosed the data breach last August, saying at the
time it affected more than 47 million current, former and
prospective customers.

The number soon grew past 50 million, and T-Mobile said in
November its investigation uncovered an additional 26 million
people whose personal information was accessed.

T-Mobile has said the information included names, addresses,
birth dates, driver’s license data and Social Security numbers.

Friday’s settlement covered nationwide litigation combining at
least 44 proposed class-action lawsuits.

Class members may receive cash payments of $25, or $100 in
California, and some could receive up to $25,000 to cover
out-of-pocket losses, settlement papers show. They will also
receive two years of identity theft protection.

John Binns, a 21-year-old American who had moved to Turkey a few
years earlier, took responsibility for the hacking, saying he
pierced T-Mobile defenses after finding an unprotected router on
the internet, The Wall Street Journal said last August.

The plaintiffs’ lawyers may seek fees of up to 30%, or $105
million, from the settlement, the settlement papers show.

—

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$350 Million Settlement of T-Mobile Breach Lawsuits Proposed

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Breach Notification
,
Cybercrime
,
Fraud Management & Cybercrime

On Top of Settling With Victims, Telecom Carrier Would Invest More in Security

Prajeet Nair (@prajeetspeaks) •
July 23, 2022    

$350 Million Settlement of T-Mobile Breach Lawsuits Proposed

A proposed $350 million settlement to resolve a consolidated class action lawsuit against the U.S. telecom carrier T-Mobile, after a 2021 data breach that affected nearly 77 million people, includes breach victims and related legal costs.

See Also: OnDemand | Zero Tolerance: Controlling The Landscape Where You’ll Meet Your Adversaries

Under the settlement, T-Mobile is required to invest an additional $150 million to bolster its data security and related technology in 2022 and 2023, according to the settlement described in an SEC filing.

Terms of Settlement

The proposed agreement, which was filed in federal court in Missouri on Friday, would settle a class action lawsuit that consolidated more than 40 lawsuits filed after the data breach was revealed in August 2021 by the U.S. telecom carrier.

It awaits court approval that is “expected as early as December 2022 but could be delayed by appeals or other proceedings,” the filing says.

The telecom carrier says it denies all the allegations made in the complaints filed against them, especially those that describe T-Mobile’s failure to protect customer data, and states that the settlement is not an admission of “liability, wrongdoing or responsibility.”

“T-Mobile denies all material allegations of the Amended Complaint and specifically…

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T-Mobile to pay $350 million in settlement over massive hacking

/in


By Jonathan Stempel and Sara Merken

(Reuters) – T-Mobile US Inc agreed on Friday to pay $350 million and spend an additional $150 million to upgrade data security to settle litigation over a cyberattack last year that compromised information belonging to an estimated 76.6 million people.

The preliminary settlement was filed with the federal court in Kansas City, Missouri.

It requires a judge’s approval, which the second-largest U.S. wireless carrier said could come by December.

T-Mobile denied wrongdoing, specifically, including accusations that it breached its duties to protect customers’ personal information and had inadequate data security.

The Bellevue, Washington-based company expects an approximately $400 million pre-tax charge in this year’s second quarter for the settlement. It said it contemplated the charge and $150 million of spending in prior financial guidance.

T-Mobile disclosed the data breach last August, saying at the time it affected more than 47 million current, former and prospective customers.

The number soon grew past 50 million, and T-Mobile said in November its investigation uncovered an additional 26 million people whose personal information was accessed.

T-Mobile has said the information included names, addresses, birth dates, driver’s license data and Social Security numbers.

Friday’s settlement covered nationwide litigation combining at least 44 proposed class-action lawsuits.

Class members may receive cash payments of $25, or $100 in California, and some could receive up to $25,000 to cover out-of-pocket losses, settlement papers show. They will also receive two years of identity theft protection.

John Binns, a 21-year-old American who had moved to Turkey a few years earlier, took responsibility for the hacking, saying he pierced T-Mobile defenses after finding an unprotected router on the internet, The Wall Street Journal said last August.

The plaintiffs’ lawyers may seek fees of up to 30%, or $105 million, from the settlement, the settlement papers show.

(Reporting by Jonathan Stempel and Sara Merken in New York; Editing by Aurora Ellis)

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Can You Minimize Ransomware Settlement Exposure with Cyber Insurance?

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Nearly anyone can be a victim on the cyber battlefield, including celebrities. The personal data of Madonna, Bruce Springsteen, Lady Gaga, and Elton John was stolen from Grubman Shire Meiselas & Sacks (GSMS), and because GSMS refused to pay the ransom in full, much of the information ended up for sale on the internet. Even though the FBI got involved and GSMS hired private individuals to recover the data, only some of it was reclaimed.

The GSMS attack used what’s referred to as the double extortion method:

  • First, they stole data
  • Then, they threatened to publish the data if GSMS didn’t pay the ransom within a specified time frame

A ransomware attacker can gain access to your system through a number of ways, including guessing an employee’s password, using malware to infiltrate your network, email spoofing, or spear phishing, which is explained in this video by Cisco.

While cyber insurance cannot prevent a ransomware attack, there’s a lot it can do if you find your systems hacked and your data held for ransom. But each attack—and insurance policy—is different. 

Below, we’ll discuss how cyber insurance works, how it can be used to reduce the impact of ransomware settlements, what it covers, and the trends shaping the cyber insurance industry.

What Is Cyber Insurance and Who Needs It?

An organization can obtain cybersecurity insurance, also known as cyber liability insurance or cyber insurance, to help mitigate internet-related risks such as ransomware and other forms of cyberattack. The insurance contract transfers some of the risks to the insurer in return for a monthly or quarterly payment.

Cyber insurance benefits companies that produce, store, and handle electronic data online, such as credit card details, client contact information, and consumer purchases. It can help pay for the costs of reclaiming data in case it gets stolen. Cyber insurance is also an advantage for e-commerce companies because downtime resulting from a breach may result in lost clients and sales. 

Can You Minimize Ransomware Settlement Exposure with Cyber Insurance?

Ransomware attacks are becoming more prevalent. And because no company is too big or small for malicious actors, it’s only a…

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