Bank Sending Up To $12,500 To Customers Following Major Data Breach That Affected 869,411 People
A recent cybersecurity breach at a US bank has led to a settlement with affected customers, providing them with compensation for the exposure of sensitive personal information. Cadence Bank, a regional bank based in the South, has agreed to a $5.25 million settlement following a data breach in May 2023. The breach was attributed to vulnerabilities in the third-party file transfer software MOVEit, which allowed cybercriminals to access customer data.
As part of the settlement, Cadence Bank has allocated $5,250,000 to a settlement fund, with affected individuals eligible to receive up to $2,500 each for documented losses related to the breach. The settlement outlines that class members can claim a one-time cash payment of up to $2,500 by submitting a claim form with proof of ordinary losses.
The lawsuit highlighted Cadence Bank’s failure to adequately protect customer information after the compromise of the MOVEit software, impacting hundreds of thousands of individuals across the country. In addition to standard reimbursements, affected individuals may qualify for up to $10,000 in compensation for extraordinary losses related to the breach, or a flat payment of $100 if they do not provide documentation.
Furthermore, the settlement includes two years of free credit monitoring services for the approximately 869,411 individuals whose personal information was exposed. Claimants must submit their forms by June 4, 2026, to receive compensation. Additionally, Cadence Bank has committed to investing at least $3.5 million in data security improvements separate from the settlement fund as part of the agreement.
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Image source: Midjourney.
