T-Mobile pays a $500 million settlement after leaking data on about 50 million users

The 21-year-old hacker who launched the attack mocked T-Mobile’s poor security. He began scanning T-Mobile’s systems for vulnerabilities in the summer of 2020, eventually finding access to T-Mobile’s data center in Washington state.

In response to this issue, T-Mobile is currently planning to spend $500 million on a settlement. The settlement plan has been submitted to the federal court in Kansas City, Missouri, USA, and the next step is to wait for the approval of the court.

T-Mobile is set to pay $350 million in damages to affected customers and $150 million to bolster its security measures. Affected users can receive compensation ranging from $25 to $100 and two years of identity theft protection. That is, if criminals use the leaked data to falsify user information, T-Mobile will also be held responsible.

Some of these users can get up to $25,000 in compensation. Because some users have been defrauded or fraudulently used because of data leakage, causing huge losses.

The settlement covers at least 44 class-action lawsuits across the U.S., and the plaintiffs’ attorneys, or groups of lawyers representing consumers, will take up to 30 percent of the settlement costs, or $105 million.

Via: arstechnica