Billion-Dollar Bank To Hand Out up to $25,000 per Customer in Settlement Over Data Breach That Impacted 2,187,170 Americans

Flagstar Bank, N.A., a top US bank, has reached a settlement in a class-action lawsuit to compensate victims of two data breaches that occurred over four years ago. The bank has agreed to pay up to $25,000 per victim, totaling $31.5 million for the 2.18 million Americans whose personal information was compromised in the breaches.

According to Flagstar, hackers gained access to a file sharing platform used by the bank in January 2021, compromising the personally identifiable information of over a million consumers. In a separate incident in December 2021, cyber criminals infiltrated Flagstar’s network and accessed the personal information of approximately one million more individuals.

The class-action lawsuit was filed on behalf of the impacted bank customers in the United States District Court for the Eastern District of Michigan. Settlement class members are eligible to receive compensation for documented losses resulting from the data breaches, including reimbursement for attorney fees, accountant fees, and credit repair services.

For those who do not have proof of losses, an alternative cash payment of around $60, or $100 for California residents, will be provided. The deadline to submit a claim form is August 11th, with final approval of the settlement expected on October 1st.

Flagstar Bank, N.A., headquartered in Hicksville, New York, manages $87.1 billion in assets. As part of the settlement, the bank denies any wrongdoing.

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Image credit: Midjourney.