Falling prey to a data breach may seem to be one of the worst things that can happen to an individual. A data breach can be defined as the moment when an unauthorized individual gains access to a set of confidential information. Depending on what information is accessed, the consequences of this breach can be far-reaching. In a lot of these scenarios, the information obtained is used in matters such as identity theft or even in financial fraud, extortion and spamming.
Understanding the concept of a worst-case scenario
Data breaches occur when certain computer systems, databases, or networks are infiltrated. The whole purpose behind this move is to gain access to that specific set of confidential information. Types of information access can include financial records, intellectual property, or even personal information. As mentioned, the consequences in these scenarios are severe and can even have legal implications.
The victim profile is varied and can include anyone from a large corporation, an individual consumer, to a small business owner. In certain instances it comes that the terms cyber attacks and data breaches are used to refer to the same thing. This is not exactly correct. The focus of a data breach is to gain unauthorized access to data. A cyber attack, on the other hand, aims to create chaos and destruction by utilizing things such as malware.
A collision course between data and real estate
Mortgage loan company LoanDepot has been drawn into a class action lawsuit for a data breach that occurred in January 2024. The company itself is known for the refinancing of homes and home equity loans that it provides, amongst other services. Accusations rendered with this lawsuit stated that no adequate cybersecurity measures were in place, which opened the door for this breach to occur.
Information of approximately 16.9 million customers came under compromise. The information in question was financial account details, addresses, Social Security information, and telephone numbers. The company did not admit to any wrongdoing, but came to an agreement for a settlement of $25 million. This was done to prevent any further legal costs from being incurred in this matter.
A round trip on eligibility
As with most things, only certain individuals are eligible to claim in this settlement, specifically those who received notice from LoanDepot about the breach. The notification would have been sent either by email or by a letter in the mail. The data breach is set to have occurred during the period 3 to 5 January 2024. An ID and Confirmation Code would have been included in the notice.
This information is specifically vitally important. Individuals who lost their notice or did not receive one can contact the settlement administrator. The administrator can be contacted either by mail or by telephone. Specific information about the lawsuit settlement can be obtained from the website as well. The objection and exclusion deadline is set for 27 April 2025. Claims can be submitted no later than 27 May 2025.
The final approval hearing will take place on 18 August 2025. Payments will only be made after the final hearing date. Documentary proof can be submitted with claim documents. Bank statements, invoices, credit reports, receipts of documents showing losses suffered or out-of-pocket expenses incurred can be eligible for up to $5,000.
These payments are meant to cover unreimbursed losses that were incurred, credit-related costs, and fees. Claimants without relevant proof of the out-of-pocket losses will be eligible for a distribution payment ranging between $5,30 to $70,71. This will be variable and be based on the amount of claims filed as well as other influencing factors. For more information about this settlement, you can visit Top Class Actions and get informed about how to file a claim.