Webster Bank Settlement 2024: Are You Eligible for Payout? Check Requirements

A data breach settlement has been reached between Webster Bank and its customers following a security incident that compromised customer information between November 27, 2022, and January 22, 2023. This article provides a comprehensive overview of the settlement, including eligibility requirements, compensation amounts, and the claims process.

What Happened?

The data breach originated from a security system error within Guardian Life Insurance Company of America, a third-party vendor used by Webster Bank. This error allowed unauthorized access to sensitive customer information, including Social Security numbers, names, and account numbers. Upon discovering the breach on January 24, 2023, Webster Bank notified authorities and customers potentially affected.

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The Settlement Agreement

In July 2023, lawsuits filed by affected customers were consolidated into a class action suit. A settlement agreement was reached in which all defendants agreed to contribute over $1.4 million to a fund for those impacted by the breach.

Who is Eligible for Compensation?

Customers who received notification from Webster Bank that their information may have been compromised during the breach are potentially eligible for compensation. This includes anyone whose data was on Guardian’s systems between the specified timeframe.

Compensation Options

The settlement offers various compensation options depending on the severity of the impact on each customer. These include:

  • Reimbursement for Out-of-Pocket Expenses: Class members can claim up to $200 for documented expenses incurred due to the breach, such as credit monitoring fees or costs associated with replacing compromised documents.
  • Time Spent Addressing the Breach: Compensation of up to $25 per documented hour, capped at four hours, is available for time spent dealing with the aftermath of the data breach, such as contacting credit bureaus or financial institutions.
  • Identity Theft and Fraud: Customers who can demonstrate documented identity theft or fraud resulting from the breach may be eligible for compensation of up to $5,000.
  • Credit Monitoring and Identity Theft Protection: All eligible class members can claim two years of credit monitoring and identity theft protection services with $1 million of insurance coverage provided by the three major credit bureaus (Experian, Equifax, and TransUnion).

Important Dates

Webster Bank Settlement 2024: Are You Eligible for Payout? Check Requirements
  • Final Approval Hearing: A court hearing to finalize the settlement is scheduled for May 20, 2024, in Washington, D.C.
  • Claim Submission Deadline: The deadline to submit a claim form has already passed (April 24, 2024).

How to File a Claim (Although the deadline has passed)

While the claim filing deadline has passed, it’s important to understand the process for future reference or similar situations. Claim forms could be downloaded from the settlement website (if available) or by contacting the Settlement Administrator at 1-888-680-3314. Completed forms should be mailed to:

Webster Bank Data Incident Settlement Administrator P.O. Box 2408 Portland, OR 97208-2408

Looking Forward

The settlement aims to compensate affected customers for the inconvenience and potential damages caused by the data breach. However, it’s crucial to stay vigilant and take proactive steps to protect your personal information. Here are some additional considerations:

  • Review Your Credit Report Regularly: Monitor your credit report for any suspicious activity. You can obtain a free credit report from each of the three major credit bureaus annually at https://www.annualcreditreport.com/index.action.
  • Enable Multi-Factor Authentication: Enhance your online security by enabling multi-factor authentication wherever available. This adds an extra layer of protection beyond just your password.
  • Be Cautious of Phishing Attempts: Phishing emails and calls often impersonate legitimate institutions to trick you into revealing personal information. Be wary of unsolicited communication and avoid clicking on suspicious links or attachments.
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By understanding the settlement details and taking steps to safeguard your information, you can minimize the impact of data breaches and protect yourself in the future.

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