A gavel designed out of binary code
The $2.2 billion Communication Federal Credit Union in Oklahoma City is paying $2.9 million to settle a class action lawsuit that alleged a 12-day cyberattack exposed members’ personal information.
What’s more, Oklahoma’s third largest credit union also agreed to invest $986,000 and hire two employees over the next five years to implement and maintain enhanced business practices to secure its computer systems, according to a settlement agreement that was publicly released last week.
Between Dec. 31, 2021 and Jan. 11, 2024, cybercriminals accessed Communication Federal Credit Union’s computer system and obtained members’ personal information including names, dates of birth, addresses, Social Security numbers, driver's license numbers, account information and bank card numbers.
Communication Federal Credit Union (CFCU) identified suspicious activity on Jan. 11 and immediately took steps to secure its systems. The credit union said an authorized third-party gained access to a portion of its computer network that contained a number of files.
CFCU hired a data-review firm to determine the scope of the breach. After receiving the results from the data-review firm on July 15, 2024, the credit union sent a notice of the breach to 193,108 individuals on Aug. 12, alerting them their personal information may have been compromised. Currently, CFCU serves more than 130,000 members.
Seven individuals filed proposed class action lawsuits alleging CFCU failed to adequately safeguard members’ personal information.
While CFCU denied wrongdoing or liability, it agreed to the settlement due to litigation risks. An Oklahoma judge granted preliminary approval in August.
The 193,108 individuals who received a data breach notification letter may file claims for up to $7,500 for documented out-of-pocket losses.
Alternatively, they may claim a pro rata share of the net settlement fund, estimated at $125.
Dec. 22 is the deadline to file a claim at this website.
The seven plaintiffs will each receive a $2,500 service fee, and the attorneys will be paid more than $966,000 in fees and up to $35,000 in expenses, according to the settlement agreement.
READ MORE: Communication FCU Settlement Agreement.
Contact Peter Strozniak at peter.strozniak@arc-network.com.
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