A data breach is when an unauthorized party gains access to confidential, sensitive information for personal or financial gain.
It’s disheartening to think that if you’re involved in a data breach, you might only learn about it from the company involved days or weeks later, further putting you at risk of financial and identity theft.
To try to resolve a data breach, companies might provide victims with a data breach settlement, or compensation.
Read the rest of this article to learn about the common types of data breaches, what happens during them, what’s included in a data breach settlement, and other important information to help you recover your losses.
What are Common Types of Data Breaches?
Some of the most common data breaches include:
- Stolen information. A scammer gains access to the company’s database or files and steals customers’ personal details.
- Phishing. Scammers trick consumers to get their information, such as by sending them email links that seem to be from the legitimate company, but aren’t.
- Viruses or malware. These get installed on devices without the user’s permission, enabling hackers to steal data.
- Unencrypted devices. Employees at the company might not be using secure, encrypted messaging systems when communicating with clients.
- Outdated, non-secure systems. These have security risks that make it easier for people to install viruses or steal data.
What Happens During a Data Breach?
During a data breach, you can lose the following:
- Personal information. This can be used for identity theft.
- Financial information. The scammer can use your financial data to steal your money or use card information to make fraudulent transactions.
- Intellectual property (IP). This can be used by competitors to gain an advantage in the market.
There are also emotional damages to consider. Experiencing a data breach can trigger feelings of sadness, fear, and even chronic stress that can impact your life.
What’s Included in a Data Breach Settlement?
A company involved in a data breach might provide victims with compensation. However, settlements can vary quite a bit depending on the type and scope of the breach. How much compensation victims receive also depends on whether the settlement is a class action or individual one.
- Class action settlements. This is when a huge number of victims have been affected by the breach.
- Individual settlements. Less common than class action settlements, this is when victims separately claim a settlement, which can result in larger payouts.
Monetary compensation aside, the settlement might also include the following:
- Credit monitoring.
- Identity theft protection.
- Financial assistance to upgrade information security systems.
- Injunctive relief (when the company adopts better security methods to protect their customers in future).
How Do You File a Claim for a Data Breach Settlement?
If you’ve been involved in a data breach, you might receive a notification from the company that you’re eligible to receive a settlement.
When you do, you can send them a claim, either online or via the mail, so that you inform them of the financial loss you’ve experienced. You might also have to submit proof of the damages experienced, such as bank statements or other documents, depending on the type of data breach.
You must submit your claim by the deadline specified so that you’re eligible for the settlement.
The company offering a settlement will usually set up a website where you can stay updated on the settlement progress.
How Can You File a Claim if a Class Action Has Been Filed?
If you haven’t filed a claim and a class action lawsuit has already been filed against the company, you can still go ahead and file a claim to get compensated. Here’s what to do.
Collect Essential Documents
Collect all the information about the data breach, such as proof that your data was stolen. This provides the evidence you need to support your claim.
Submit the Company Your Claim
File a claim through the company’s website. Keep a copy of the claim so that you have proof of sending it. Be sure to get a claim number after submitting your claim.
Consult a Lawyer
Navigating a data breach settlement can be challenging, so it’s a good move to hire a data breach lawyer for help. They will help you to figure out if you qualify for the settlement and gather important documents that will support your case. By ensuring you send all the required information, this will prevent delays.
Other information a lawyer will collect on your behalf to strengthen your case includes:
- Personal statements about the financial or emotional losses.
- Breach notifications from the company, such as emails.
- Details about how the data breach occurred.
Your lawyer will help you to negotiate the settlement so that you get the most favorable outcome. They’ll also explain confusing or vague settlement terms.
What Happens After a Data Breach Settlement Claim?
After submitting the claim, legal action or settlement negotiations will occur. It’s common for companies to try to settle so that they don’t have to spend lots of money on going to court.
How Can You Protect Your Info After a Data Breach?
If your sensitive information has been leaked or stolen, you should take important steps to minimize your risks.
- Change all your passwords. While you should do this for your account with the company who suffered the breach, it’s worth taking the opportunity to change all your other passwords.
- Enable two-factor authentication to provide more security to your accounts.
- Check all your financial statements, such as credit cards, so that you can quickly report any suspicious transactions. Do this on a regular basis.
Do you need to hire a lawyer for a data breach settlement?
If you’ve been involved in a data breach settlement, you should contact a lawyer on ContractsCounsel, an online legal network connecting clients with vetted lawyers. You’ll get to work with a professional lawyer with years of experience in assisting clients with data breach settlements. They’ll help you minimize your risks, protect your interests, and help you feel empowered.
