Can you claim a settlement and how do you get it?

You have probably heard or seen news of this Yahoo settlement, but what exactly is going on? Why is Yahoo paying its customers and who can get in on the action?

What is the settlement for?

In 2013, Yahoo’s database was hacked, putting a total of 3 billion users’ accounts and login information at risk. It is hard to know the full extent of how this breach can affect the victims. Yahoo led users to believe that their information was secure, though that was clearly not the case.

After the Yahoo data breach, the company had its users change login information and security questions to help protect their accounts from further unauthorized access. This year, Yahoo agreed to pay out a $117 million settlement among the victims.

Who can claim it?

Pretty much every Yahoo user who had any of the following accounts between January 2012 and December 2016 qualifies:

  • Yahoo email
  • Yahoo Finance
  • Flickr
  • Tumblr
  • Yahoo Fantasy Sports

There are some stipulations, though. Even if you qualify, there is a chance that you will not get the cash. Victims who do not have a credit monitoring service will unwillingly forego the money in exchange for two free years of AllClear ID credit monitoring service.

In 2013, Yahoo’s database was hacked, putting a total of 3 billion users’ accounts and login information at risk. Yahoo led users to believe that their information was secure. This year, Yahoo decided to pay out a $117 million settlement among the victims.

Those that do have a current credit monitoring service should receive monetary compensation of up to $358. The total amount that you receive, though, may not be that high. It will depend on how many valid claims are filed. The more people Yahoo has to compensate, the lower the amount each person receives.

Why would victims want credit monitoring services?

Getting credit monitoring service instead of cash may seem like you are getting the short end of the stick but you really aren’t. Services like these can help protect you from further data breaches or at least let you know when something is going on. You might be surprised how many people get hacked and have no clue until it is too late.

While data breaches can cause many issues, identity theft is obviously a major concern. When you work hard to build your financial life only to have someone come along and destroy it, it is discouraging and very frustrating. Digging your way out of the trouble identity theft causes is a monumental task that nobody wants to face. Even if all you receive from the settlement is credit monitoring, you are gaining a valuable tool that can help protect your financial future.

Photo Courtesy: [CafeCredit.com/Flickr]

How do I get my money?

If you feel that you qualify for a piece of the action, it is pretty simple to file a claim. Those that do not mind filing an online claim can go straight to the website dedicated to this settlement: www.yahoodatabreachsettlement.com.

For those who prefer filling out a paper copy, you can get the claim form mailed to you by either calling 1-844-702-2788 or by requesting a form via email at info@yahoodatabreachsettlement.com.

Do keep in mind that there is a deadline. You must have your claim filed by July 20, 2020, but sooner is always better. It’s easy to get busy and forget, so do it now and get it off your mind.

A deeper dive- Related reading from the 101:

Use your settlement to start investing.

Or you can use it to pad or start your savings.

You could even use your it to start paying off debt.