Data breaches have become all too common, leaving people unprotected and frantically seeking compensation or protection. Paycom, a well-known supplier of payroll and HR software, experienced a serious hack in 2023 when a flaw in the secure file transfer service MOVEit Transfer exposed customer information. Numerous clients’ identities were stolen due to this breach, which prompted a class action lawsuit against Paycom, which has now settled for $900,000.
This article describes the terms of the settlement, who is eligible, and how those who will be impacted can get their fair part of the money.
Thousands of customers were impacted by the Paycom breach, which exposed private data because of a weakness in MOVEit Transfer’s secure file transfer technology. A class action lawsuit alleging that Paycom failed to put in place sufficient cybersecurity safeguards to safeguard customer data was filed after the hack.
As is customary in class action settlements, Paycom agreed to pay $900,000 but did not acknowledge any wrongdoing. If they fit specific requirements, impacted clients now have the chance to request compensation.
Eligibility
Individuals must fulfil the following conditions in order to be eligible for compensation under the Paycom settlement:
- Residency: The impacted person needs to be a US resident.
- Data Compromise: During the July–October 2023 breach period, people’s personal information that was kept with Paycom had to have been accessed.
Shortly after the breach was identified, Paycom got in touch with the impacted parties. Participation is open to those who were notified directly or who received a postcard notice including their claim credentials (Claim Login ID and Claim Login PIN).
File a Claim
Those who are impacted can use the login information on their notification or postcard to submit their claim via the official settlement website. Paycom has a list of impacted clients, therefore fortunately, no further paperwork is needed. The financial impact of the breach on each person’s unique situation, however, determines how much they can claim.
Amounts
The available compensation is set up to take into account the degree of injury that the impacted person has endured. Below is a summary of possible claim sums:
- Documented Out-of-Pocket Losses: You are eligible to receive up to $2,500 if you can show that the breach caused you to suffer financial losses.
- Identity Theft Losses: The $4,200 compensation cap applies to those who were the victims of identity theft following the breach and can provide proof of their losses. To further protect their identity, those in this category will also be eligible for free credit monitoring services for three years.
Deadlines
Affected persons who wish to opt out or participate in the settlement have two important deadlines to meet:
- Deadline for Filing Claims: Those who qualify must submit their claims by November 7, 2024.
- Deadline for Exclusion and Objection: November 7, 2024, is the deadline for anyone who wants to object to the terms of the settlement or exclude themselves from it.
Final Words
Affected customers have the chance to recover a portion of their losses as a result of the Paycom settlement, which follows a significant data breach. In order to address different levels of harm, the settlement offers victims of identity theft up to $4,200, plus credit monitoring, and up to $2,500 for proved out-of-pocket expenses. It is easy for eligible persons to submit their claims by following the guidelines provided in the notification.
Meeting the dates of November 7, 2024, to either opt out of the settlement or claim compensation is essential. This window allows you to handle any financial fallout from the breach and guarantees that you don’t miss out on any possible recompense. This settlement emphasises the significance of understanding your rights and options when personal data is compromised, especially in light of the growing frequency of data breaches.
