United Services Automobile Association (USAA), a financial services company that serves military members and their families, settled for $3.25 million after a class-action lawsuit over a 2021 data breach. Thousands of Americans whose information was breached have to hurry since the deadline of April 7, 2025, to file a claim is fast approaching.
What happened in the USAA data breach?
USAA had a cybersecurity incident in May 2021 where sensitive personal data, including driver’s license numbers, were revealed via its auto-quote system for insurance. The reason was system vulnerabilities in auto-filling motor vehicle records that made the data available for unauthorized access. Customers were informed of the breach soon after the incident took place, and several customers found their information was used to open accounts fraudulently without consent.
The class-action suit, in the name of Vincent Dolan, claimed that USAA was negligent and had not had proper cybersecurity protection. Although USAA has asserted no fault, it settled the suit in December 2024 on the grounds that it was in the best interests of its members and would avoid costly lengthy litigation.
Who Is eligible for compensation?
Individuals who are eligible to claim compensation from the settlement have some criteria that must be fulfilled:
- Impacted by the breach: Your data would have been compromised during the May 2021 data breach.
- Notice of receipt: You would have received a formal notice from USAA about the breach.
- Resident in the U.S.: The settlement is only for U.S. residents.
- Fraudulent account creation: Although you would not have been a willing actor as a member of USAA, you could be entitled if your information was used to create an account fraudulently.
Around 22,600 individuals are eligible for payment, each of whom will be getting around $95 less legal and administrative fees.
How to make a claim
It is easy to make a claim but needs attention and good time management. To make your claim, follow these steps:
- Check eligibility: Verify that you qualify under the above and have a notification letter from USAA containing your claimant ID and confirmation code.
- Go to official settlement website: Go to the USAA settlement website specified in your notification letter.
- Fill out the claim form: Input your claimant ID and confirmation code, along with other personal information that is requested.
- Submit your form: You may submit online or send a printed form. Ensure postmarking by no later than April 7, 2025.
- Alternative processing: Alternative processing companies such as Sparrow provide efficient claim filing without the need to prove notification.
Critical deadlines
Time is of the essence for eligible persons to act. Critical dates are:
- Claim submission deadline: April 7, 2025.
- Exclusion/objection deadline: April 7, 2025.
- Final approval hearing: May 21, 2025.
Missing the deadline will make you lose your right to compensation.
How much will you get?
The total settlement amount of $3.25 million is to be divided equally among the qualifying claimants after deducting attorney fee and admin charges. Despite projections of payments ranging from $95 per individual, such payment may be varied based on the number of claims filed.
When will they pay?
Payment will be made within 60 days of the final approval by the court, which is set for May 21, 2025. Administrative considerations and participation levels can change processing times, though.
With fewer than four weeks left until the deadline of April 7, 2025, for filing, thousands of USAA data breach-impacted Americans have little time to pursue their portion of the $3.25 million settlement. Filing a claim will provide compensation for harm that came to personal information that had been breached in May 2021.
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