Equifax Data Breach Settlement: $125 Million Payout Coming Next Month – Are You Eligible?

December 28, 2024 Add Comment
Equifax Data Breach Settlement $125 Million Payout Coming Next Month - Are You Eligible
Equifax Data Breach Settlement $125 Million Payout Coming Next Month - Are You Eligible

In 2017, Equifax suffered a catastrophic data breach that affected 147 million people, revealing personal information such as Social Security numbers and addresses. Equifax agreed to pay up to $425 million to compensate anyone affected by the incident and provide identity recovery services.

The FTC, CFPB, and 50 US states and territories collaborated to reach the settlement, which was finalized in 2020. The deadline for filing a compensation claim was January 2023, although free identity recovery services remain available until January 2029.

If you received an email offering more compensation, it is most likely authentic. However, it is critical to verify the sender’s information to confirm that it is not a hoax. This article explains how to authenticate the legitimacy of the email and what you should do next.

Equifax Data Breach Settlement Approved

Equifax Data Breach

In September 2017, Equifax, one of the main credit reporting companies in the United States, announced a significant data breach that compromised the personal information of 147 million people. The breach revealed sensitive information, such as names, Social Security numbers, birth dates, residences, and, in certain circumstances, driver’s license numbers.

As a result, Equifax struck a global settlement agreement with the FTC, the Consumer Financial Protection Bureau (CFPB), and 50 US states and territories. The deal includes up to $425 million in compensation and assistance for those affected by the incident.

The Legitimacy of the Email

If you received an email saying that you are entitled for an additional payment due to the Equifax settlement, here’s why you should believe it.

  • Personalized Greeting: TThe email will address you by your entire name, which is a strong indicator that it is real. Scammers often utilize generic pleasantries like “Dear Customer.”
  • Sender Information: Legitimate emails on the Equifax settlement can originate from one of two addresses:
  • Prepaid Card: The email will advise you that the settlement amount will be delivered in the form of an electronic prepaid card during the week of December 9. This is consistent with the terms of the settlement.

Timeline of the Settlement Process

Here’s a quick summary of the important events and deadlines related to the Equifax data breach settlement:

Date Event
September 2017 Equifax announces the data breach affecting 147 million people.
2019 A class action lawsuit is filed, leading to a settlement agreement.
2020 The settlement is finalized, including provisions for compensation and identity theft assistance.
January 2023 The deadline to file claims for compensation passed.
December 9, 2024 Expected date for the distribution of additional settlement payments via electronic prepaid cards.

What Can You Expect in the Settlement?

If you enrolled into the class action case, you are eligible for compensation. The settlement provides two important benefits for individuals harmed by the data breach:

Payment
You can expect to receive an electronic prepaid card during the week of December 9, 2024. The precise payment amount varies and is determined by a number of criteria, including the number of claims submitted and the terms of the settlement agreement.
Identity Theft Recovery Assistance

Even if you did not file a claim, you are still entitled for free identity theft recovery services through January 2029. These services are offered to those affected by the breach, and you can verify your eligibility using an online lookup tool. If you discover that your personal information has been misused, you can receive free identity restoration services.

Activate Pre-Paid Card

When you receive your pre-paid card, you can redeem it with the card servicer. Follow these procedures to activate your card:

  • Redeem Your Card: You may redeem your pre-paid card through the card servicer at the following link: www.myprepaidcenter.com/redeem.
  • Customer Support: If you have any questions regarding the redemption process or encounter any issues, you may contact the card servicer directly at 1-833-678-6289.
  • Inactivity Fees: It’s important to note that while the pre-paid cards do not expire, after six months of inactivity, there may be associated inactivity fees. To avoid these charges, make sure to use your card within this timeframe.

How to Verify the Email

While the email is legitimate, it is always a good idea to double-check its veracity. Here’s how you can accomplish that:

  • Check the Sender’s Address: Confirm that the email is coming from one of the official email addresses associated with the Equifax settlement: [email protected] or [email protected].
  • Look for a Personalized Greeting: Legitimate emails will always use your full name. A generic greeting is a common sign of phishing.
  • Visit Official Websites: Instead of clicking links in the email, visit the Equifax Data Breach Settlement Website directly by typing the URL into your browser. You can check the status of your claim and other related information there.

If you received an email about the Equifax data breach settlement, it is legitimate, as long as it came from one of the confirmed email addresses and addressed you by your complete name.

The email is part of an ongoing attempt to pay anyone impacted by the hack, which resulted in a global settlement of up to $425 million. Remember that if you missed the claim filing date, you can still receive free identity theft recovery services until 2029.

For additional piece of mind, always confirm any contact relating to personal data with reputable sources directly, rather than following links in unsolicited emails.

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