Yahoo to Pay $50 Million for the Data Breach

Back in 2013, Yahoo experienced one of the biggest security breaches in history and, despite 3 billion users having been exposed, the company kept quiet.

Now, AP reports that Yahoo has agreed to pay $50 million in damages for not securing their data and not announcing exposed customers about the breach.

According to the class action lawsuit settlement terms, Yahoo will have to provide two years of free credit-monitoring services from AllClear to all victims of the hack from the US and Israel. At $14.95 per month for an AllClear subscription, victims of the Yahoo breach will be getting a compensation worth $359.

Even more, some can actually receive actual cash!

Because the stolen information was composed of names, email addresses, dates of birth, and even phone numbers and security answers, some Yahoo users were victims of identity theft and suffered damages like delayed tax refunds.

If you were among them, then this part of the AP report should catch your attention.

“The fund will compensate Yahoo account holders at a rate of $25 per hour for time spent dealing with issues triggered by the security breach, according to the preliminary settlement. Those with documented losses can ask for up to 15 hours of lost time, or $375. Those who can’t document losses can file claims seeking up to five hours, or $125, for their time spent dealing with the breach.”

The settlements will be dispersed by Verizon and Altaba Inc, two of the companies that now own Yahoo. Now, if the same punishment would be given to Equifax, perhaps data processors would invest more in security and data breaches would not happen so often.

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