AT&T to issue payments in $177 million data breach settlement — here’s how to see if you qualify

AT&T customers affected by recent data breaches may soon receive part of a $177 million class-action settlement, with some eligible claimants potentially getting as much as $5,000.

The agreement settles two separate security incidents tied to the telecom company, after lawsuits accused it of failing to protect customer data.

A federal court gave final approval to the settlement.

If no appeals are filed, the deal will take effect after that approval, and payments are expected within 60 days of the effective date.

The $177 million total is divided between the two incidents.

One breach is tied to a $149 million settlement, while the other is associated with $28 million in damages.

The exposed information included Social Security numbers, addresses and account passcodes, affecting more than 7.6 million active account holders and 65.4 million former customers.

People covered by the settlement may claim up to $5,000 for documented out-of-pocket losses connected to the first breach. They may also choose a tiered cash payment instead.

In large class-action cases, tiered payments are usually divided into categories. Tier 1 payments go to people whose most sensitive information, such as a Social Security number, was exposed. Those claimants do not have to show financial loss if there is proof their data was leaked.

The second incident involved compromised call and text interaction logs stored on a third-party cloud platform. Customers in that group may seek up to $2,500 for proven losses. Nearly all customers were affected by that breach.

Court filings say some victims reported serious identity theft, including emptied bank accounts and fraudulent loans opened in their names.

AT&T said in a statement that it was not known whether the leaked information came from the company or one of its vendors.

The second incident was reportedly traced to data illegally downloaded from AT&T’s workspace on a third-party cloud platform. Public reports and congressional letters identified that platform as Snowflake, a cloud data company used to store and analyze large amounts of information. AT&T did not confirm the source of the first breach.

Lawmakers referred to Snowflake in letters sent shortly after the second disclosure. AT&T’s statements mentioned a third-party cloud platform but did not name Snowflake in the release or SEC filing.

More than 4.9 million claims were filed and 3 million were approved. Another 1.1 million were rejected as late, duplicate, fraudulent, released, withdrawn or ineligible business claims, according to The Sun.

Those who qualified for the settlement had to submit a claim by the published deadline, and filing now is no longer an option under the settlement terms.

AT&T agreed to the settlement to avoid further court action but did not admit wrongdoing.

Impacted customers can check their status or find updates on the official settlement portal at telecomdatasettlement.com or by calling 833-890-4930.