Don't be surprised if you receive $25,000 from T-Mobile in April

Payments will start going out soon to T-Mobile customers affected by the 2021 breach, according to the settlement website.

A cyberattack revealed in August 2021 exposed sensitive information such as names, addresses, phone numbers, dates of birth, and social security numbers of nearly 76 million US customers.

The company agreed in 2022 to pay $350 million to settle a claim brought against it by customers whose personal information was compromised. They blamed T-Mobile for not adequately protecting their information.

If you were with the company in 2021 and believe that you were impacted, you are eligible for a slice of the class action settlement. The distribution is expected to begin in April.

The settlement is not an admission of wrongdoing by T-Mobile. This a route often taken by companies to avoid lengthy court trials.

If you are a class member - someone impacted by the breach - it doesn't matter if you didn't file a lawsuit separately. Class members were previously notified of the proposed settlement, so if you are one of the more than 76 million T-Mobile customers affected by the breach, there are no further steps to take. If you want to confirm if you are a class member, you can call 1-833-512-2314 or contact the Settlement Administrator here.

In addition to making cash payments to customers, a $350 million settlement fund will also be used for other expenses such as paying attorney's fees.

Customers who incurred out-of-pocket losses or spent money due to the breach should expect to receive up to $25,000. If you spent time on "remedying fraud, identity theft, or other alleged misuse of your personal information that you believe is fairly traceable" to the breach, you should expect to be reimbursed at a rate of $25 per hour or your hourly wage if you took time off work.

Customers who didn't claim out-of-pocket losses or lost time will likely receive $25, or $100 if they resided in California on August 1, 2021.

John Binns, who was indicted for the breach in 2023, was arrested last year.