USAA has reached a $3.25 million class-action settlement following a 2021 data breach that exposed customers’ personal information. If you’re a USAA customer impacted by the breach, it’s time to take action; filing a claim before the April 7 deadline is essential to securing your share of the settlement.
How to File a Claim in the USAA Settlement
If you were affected, you may have already received a unique notification from USAA by email or mail. These notifications include key details, such as a unique ID number and specific codes you’ll need to start your claim. Ensure you retain these documents.
For more information for filing, head to usaadatasettlement.com, the website dedicated to processing these claims. The process is straightforward, allowing eligible individuals to claim their portion of the settlement without additional complications. Acting swiftly is critical, though; once the deadline passes, there’s no guarantee you’ll receive compensation if the settlement administrator cannot locate you.
For those unfamiliar with class-action settlements, the process essentially pools all claims into a single lawsuit to benefit a larger group of people in similar circumstances. Here, every customer affected by the breach has the chance to claim restitution, but only if they submit the necessary information before the cut-off date.
The Lawsuit Behind the Settlement
The origins of this settlement stem from allegations against USAA tied to its handling of personal data. Specifically, USAA was accused of using vehicle records to auto-fill sensitive info, such as driver’s license numbers, when generating insurance quotes.
Vincent Dolan filed the lawsuit on behalf of affected customers after learning his information had been exposed. Hackers allegedly used his personal data to open a fraudulent membership account. Acting as the class-action representative, Dolan is set to receive $10,000 as part of the resolution.
USAA, while agreeing to the settlement, has denied any wrongdoing. According to a spokesperson, the breach was part of broader, industry-wide cybercrime activity. “USAA takes our responsibility of protecting personal information seriously, and our security measures are continuously strengthened to prevent unauthorized access and use,” the statement explained.
The company claims to have notified all impacted customers promptly and offered complimentary identity theft protection services back in 2021. However, the settlement enables USAA to avoid extended and costly litigation.
Who Is Eligible for Compensation?
If you’ve been contacted by USAA regarding this breach, chances are you’re among those eligible for compensation. To qualify, you must have received a notification and submit your claim by the April deadline.
Other compensatory elements include up to $10,000 for out-of-pocket expenses related to identity theft. These may include costs for credit monitoring, money lost to fraud, or hours spent resolving the fallout from unauthorized use of your data. However, specific documentation is required to claim above-average payouts.
The bulk of participants will likely receive smaller, standardized payments. Still, the settlement is an acknowledgment of the breach’s impact and offers some semblance of restitution for affected individuals.
What We Can Learn from the USAA Data Breach
This incident highlights the growing challenges individuals face when it comes to protecting personal data in a highly connected world. While companies like USAA are expected to safeguard customer information, breaches are becoming an all-too-common occurrence. Cases like this serve as a wake-up call to us all.
Here are some key takeaways and proactive steps you can take to protect your data in the future:
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Monitor Your Accounts Regularly
Keep an eye on your bank accounts, credit card statements, and any accounts tied to sensitive data. Set alerts for unusual activity if your financial institution offers that feature. -
Use Strong and Unique Passwords
It’s easy to stick with the same password across multiple platforms, but doing so leaves you vulnerable. Opt for lengthy, complex passwords, and consider a password manager to simplify the process. -
Enable Two-Factor Authentication (2FA)
Wherever possible, enable 2FA on your accounts. This extra step might feel like an annoyance, but it ensures even if a hacker has your password, they can’t access your account without a secondary verification code. -
Leverage Free Credit Monitoring After a Breach
Many companies offer free credit monitoring services following a data breach, as USAA did in this case. Take advantage of these services to stay on top of your credit report for unusual activity or signs of identity theft. -
Educate Yourself
Cybersecurity doesn’t have to be complicated. Simple measures like avoiding suspicious emails, protecting your Wi-Fi connection with a secure password, and being cautious about sharing personal information online can go a long way.
Final Thoughts
The USAA settlement serves as a reminder of the lasting effects of data breaches. While the compensation offers some relief for affected customers, it underscores the importance of personal vigilance in today’s digital world. Cybercriminals often target data with multiple uses—from identity theft to account takeovers.
Take time to evaluate whether your own personal information could be at risk. By using robust protection measures and staying informed, you can better shield yourself from the next cyberattack. While companies are obligated to improve their defenses, you, too, hold power to strengthen the safety net around your identity.