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T-Mobile to settle data breach lawsuit with $350 million

T-Mobile will pay a total of $350 million to settle a lawsuit concerning a customer data breach. Beneficiaries will include customers that used the service in August 2021, per an Engadget report.

About 76.6 million customers were affected by the massive breach that left personal information exposed. The company already addressed the incident when it occurred, with CEO Mike Sievert offering an apology for its effect.

According to the statement, T-Mobile admitted that the bad actor knew its infrastructure quite well, hinting that it could have been an inside job. The hacker proceeded to sell the data they obtained on black market forums.

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While the network provider could not confirm what specific information was leaked about each person, customers were told that they should proceed with the mind that their names, birth dates, and social security numbers were compromised.

T-Mobile also reached out privately to individuals affected by the hack and is now taking it a step further by paying them. However, the bulk of the $350 million settlement will go to the law firm doing the suing.

In addition to the settlement, which a court still has to approve, the company agreed to set aside $150 million to upgrade its security to prevent this kind of leak in the future.

T-Mobile is one of the most popular service providers in the US, and Statista says that it has over 109 million subscribers in 2022.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.