United Services Automobile Association (USAA) has reached a settlement of $3.25 million related to a class-action lawsuit stemming from a data breach that exposed sensitive personal information of millions of customers. The data breach incident occurred in 2020 due to inadequate security measures that led to unauthorized access to customer accounts. According to the settlement, affected individuals will receive a portion of the funds as compensation for the distress and risk of identity theft caused by the breach. Claimants can submit their claims for compensation until May 10, 2023. USAA spokespersons have stated, ‘We take the protection of our members’ information very seriously and have made significant investments to improve data security since the breach.’ This settlement will enable USAA to continue to enhance its cybersecurity measures, reinforcing its commitment to safeguarding member data in the future. Claimants must provide proof of loss or identity theft and will need to apply through the settlement website. The breach implicated personal information including Social Security numbers, bank account details, and addresses, impacting an estimated 1.5 million customers. Legal representatives of the claimants highlighted that the settlement reflects a significant step towards accountability and safeguarding consumer rights in the face of growing cybersecurity threats.
