Data breaches are becoming increasingly common, and victims often find themselves in a position where the only recourse is to protect their information better and seek compensation. This is the case with the recent Paycom data breach that affected thousands of individuals. Here’s an overview of the breach, the class action lawsuit that followed, and what individuals can expect from the settlement.
What Happened in the Paycom Data Breach?
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Paycom, a leading provider of payroll and human resources technology, suffered a data breach in 2023. The breach occurred when data stored on the company’s servers was accessed, compromising the personal information of its clients. The breach involved MOVEit Transfer, a secure file transfer application, which was used to handle sensitive client data.
As a result, the personal information of affected individuals, including names, Social Security numbers, and other private details, was exposed. This caused significant concern about identity theft and other potential damages.
Class Action Lawsuit and Settlement
In the aftermath of the breach, a class action lawsuit was filed against Paycom. The lawsuit claimed that the company failed to implement adequate cybersecurity measures to prevent the breach, holding them responsible for the consequences of the incident. The class action status meant that the case was filed on behalf of all individuals who were similarly affected by the breach.
Rather than going to trial, Paycom opted to settle the case for $900,000. However, it’s important to note that as part of the settlement, the company did not admit to any wrongdoing. The settlement was designed to compensate the victims while bringing an end to the legal proceedings.
Eligibility for Paycom Settlement
To be eligible for compensation under the Paycom settlement, individuals must meet two key requirements:
- Residency: The individual must reside within the United States.
- Involvement in the Breach: The individual’s personal information must have been compromised during the period of the breach, which occurred between July and October 2023.
Paycom notified those affected by the breach soon after it was discovered. If you did not receive a direct notification or a postcard with a Claim Login ID and PIN, it’s unlikely that your data was part of the breach. However, if you believe you may have been affected, it’s advisable to reach out to the class administrator at (844) 804-3284 or email them at info@paycomdatasettlement.com to confirm your eligibility.
How Much Can You Claim from the Settlement?
The amount of compensation an individual can claim depends on the losses they incurred as a result of the breach. The details of the claims are as follows:
- Out-of-Pocket Losses: Individuals who can document financial losses directly related to the breach are eligible to claim up to $2,500.
- Identity Theft Losses: If the breach led to identity theft, individuals can claim up to $4,200, along with three years of credit monitoring services.
It’s essential to ensure that you meet the criteria and follow the process outlined in the settlement to receive the appropriate compensation.
Important Deadlines to Keep in Mind
There are two key deadlines that individuals affected by the Paycom data breach should be aware of:
- Claim Filing Deadline: Affected individuals must submit their claims by November 7, 2024.
- Exclusion and Objection Deadline: If you wish to exclude yourself from the settlement or object to the terms, you must do so by November 7, 2024.
Failing to meet either of these deadlines means losing the opportunity to claim compensation and potentially waiving your rights in any future legal proceedings related to this breach.
Conclusion
While no one wants to be part of a data breach, those affected by the Paycom breach in 2023 can take comfort in knowing that there is an opportunity to seek compensation. By meeting the eligibility criteria and filing their claims before the deadline, individuals can receive financial compensation for their out-of-pocket losses and, in some cases, identity theft consequences. As always, it’s essential to stay vigilant about your personal data and ensure you’re taking the necessary steps to protect it in the future.