In 2023, Paycom, a well-known provider of payroll and HR software, experienced a significant data breach that exposed the sensitive personal information of many customers. This incident has resulted in a class action lawsuit, leading to a $900,000 settlement. Affected individuals may be eligible for compensation of up to $4,200. Here’s what you need to know about the breach and how to claim compensation.
What Happened During the Breach?
Between July and October 2023, hackers exploited a vulnerability in the MOVEit Transfer system, a secure file-sharing tool used by Paycom. This allowed unauthorized access to personal data stored on Paycom servers, including names, addresses, Social Security numbers, and financial information.
The breach exposed customers to risks of identity theft and financial loss. A class action lawsuit accused Paycom of failing to implement adequate security measures, which allegedly contributed to the breach. Although Paycom has not admitted fault, the company has agreed to settle the case.
Settlement Details and Compensation
Under the settlement, affected individuals are eligible for:
- Up to $2,500 for out-of-pocket expenses related to the breach.
- Up to $4,200 for those who experienced identity theft caused by the breach.
- Free credit monitoring for three years to help safeguard against future risks.
Eligibility and Claim Process
To qualify for compensation, you must meet these requirements:
- Residency: You must reside in the United States.
- Data Impact: Your personal information must have been stored by Paycom and affected during the breach.
Paycom has notified eligible customers via postcard notices containing a PIN and Claim Login ID. If you’re unsure of your eligibility, contact the settlement administrator at (844) 804-3284 or email [email protected].
To file a claim:
- Visit www.paycomdatasettlement.com.
- Log in using your PIN and Claim Login ID from the notice.
- Submit your claim and choose a payment method (direct deposit or check).
The deadline to file is November 7, 2024.
Protecting Yourself After a Data Breach
After a breach, it’s vital to protect your personal information:
- Monitor your financial accounts for unusual activity.
- Change passwords for sensitive accounts.
- Use identity theft protection services.
Conclusion
If you were affected by the Paycom data breach, ensure you file a claim before the deadline to receive compensation and free credit monitoring. Staying vigilant and proactive can help protect you from future risks related to identity theft. For the latest updates, visit the official settlement website.