Flagstar breach victims can claim up to $25,000 by August 11
Flagstar Bank has agreed to a $31.5 million class action settlement following two major data breaches in 2021 that exposed the personal information of millions of customers. Affected individuals can file claims for compensation of up to $25,000 until August 2026.
Why it matters
The settlement provides a path for victims of cyberattacks to seek financial restitution and highlights the ongoing risks of data security in the banking sector.
Millions of Flagstar Bank customers who were affected by two cyberattacks in 2021 could be eligible for compensation under a class action settlement. The American bank has agreed to pay $31.5 million to settle claims linked to the data breaches, although it continues to deny any wrongdoing.The lawsuits were filed after hackers accessed sensitive personal information during the cyberattacks. Customers claimed that the bank failed to properly protect their personal information and did not notify them about the breaches quickly enough. Now, the bank has decided not to with a lengthy court battle and agreed to resolve the case through a settlement reached during mediation.People who received a notice saying their information was affected can now submit claims for compensation.
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