AT&T's $177 Million Settlement Will Pay Victims of Two Huge Data Breaches

In a significant move to address two major data breaches that affected millions of AT&T customers, US District Judge Ada Brown has granted preliminary approval to a proposed settlement worth $177 million. The settlement aims to compensate individuals whose personal information was exposed to hackers during the 2019 and 2024 data breaches.

How Did This Happen?

AT&T confirmed the two data breaches in July last year, announcing an investigation into the first breach that began in 2019. The company revealed that approximately 7.6 million current and 65.4 million former account holders had their data exposed to hackers, including names, Social Security numbers, and dates of birth. The second breach occurred in April 2024 when a hacker broke into AT&T's cloud storage provider Snowflake and accessed almost all of the company's US customers' 2022 call and text records.

Who Qualifies for the Settlement?

The settlement will pay out to any current or former AT&T customer whose data was accessed in one of these data breaches. To receive higher payments, claimants must provide documented proof that they suffered damages directly resulting from their data being stolen. Those who are eligible should receive a notice by email or mail, which may arrive sometime in the coming months.

Payment Amounts and Timeline

The settlement offers varying payment amounts based on the extent of damage caused by the data breaches. For the 2019 breach, claimants can receive up to $5,000, while those affected by the Snowflake breach in 2024 are eligible for a maximum payout of $2,500. AT&T expects that claims processing will begin on August 4, 2025, and payments may start as early as 2026.

Eligibility and Claim Process

Claimants must provide "reasonable" proof to be eligible for the highest and most prioritized payouts. AT&T will focus on making payments to those who suffered damages from both breaches before disbursing any remaining funds. It's unclear at this time how customers affected by both breaches will receive payment.

AT&T's Response

Throughout this process, AT&T has continued to deny responsibility for the data breaches, labeling them as "criminal acts." Despite this, the company is moving forward with a settlement aimed at providing compensation to those affected.

Stay tuned for updates on this developing story as more information becomes available. In the meantime, check out CNET's daily tariff price impact tracker for more money help and news.