The American FinWise Bank data breach collective lawsuit has reached a settlement of $2.8 million, where affected individuals can claim up to $5,000. Even without proof of financial loss, individuals may still be eligible for cash compensation, provided that applications are submitted by October 29th.
This case involves a data breach event that occurred around May 31, 2024, where personal information such as customers’ names, birthdates, social security numbers, and bank account numbers may have been compromised.
Following the incident, affected individuals filed a collective lawsuit against FinWise Bank, its parent company FinWise Bancorp, and the financial technology company American First Finance, alleging that these companies failed to adequately protect customer data. The defendants denied the allegations but agreed to pay the $2.8 million settlement.
According to the official settlement website, eligible applicants are primarily residents of the United States whose personal information was impacted by this data breach, including customers who received notification of the breach.
Compensation is divided into two categories. The first is for actual loss compensation – individuals who have suffered fraud, identity theft, or incurred expenses for credit monitoring as a result of the data breach can apply with bank records, receipts, etc., for a maximum of $5,000 per person.
The second category does not require proof of financial loss. Eligible applicants can apply for cash compensation, the amount of which will be determined by the remaining settlement funds and the number of valid applicants, so the actual amount received per person may vary. Qualified California residents will receive double the amount of cash compensation compared to residents of other states.
Additionally, affected individuals can apply for two years of free credit monitoring services and can choose one of the aforementioned cash compensations.
Those who have received the settlement notice can file their application on the official website using the personal identification code and PIN provided on the notice. Individuals who have not received a notification or have lost relevant information should contact the settlement management entity to inquire about eligibility.
It is important to note that $5,000 is only the maximum claim limit for individuals with documented losses and not all individuals may receive this amount. If the total approved claims exceed the available funds, actual compensation may be reduced.
The settlement has received preliminary approval from the court, with a final approval hearing scheduled for December 10th. Compensation funds will be distributed only after the settlement receives final approval.