According to recent reports, Americans will receive a new direct payment as a result of the Arthur J. Gallagher user data breach soon. Even with the speed and convenience that technology has provided in the modern era, there is still a risk of data breaches.
Depending on the criticality of the data or information that has been leaked, hackers may effectively hold you hostage without even having to be in the same country.
Several businesses have recently faced class action lawsuits and large compensation awards as a result of data breaches, indicating that there is a sizable market for people’s personal information.
The Arthur J. Gallagher user data breach will deliver the $5,000 direct payment soon
There are already class action lawsuits pending against one of the world’s largest insurance companies over claims of a data breach. Victims of this breach could receive up to $6000 in compensation if the case is accepted.
Arthur J. Gallagher & Co. is the insurance company that is currently responsible for paying approximately 3.5 million of its customers. The Arnold Law Firm, which has been leading the class action lawsuit against the insurance company, claims that the corporation reached a settlement agreement for a $21 million payout last year.
The data breach, which exposed private information, lasted several months, from June 3 to September 26, 2020.
The exposed data included customer and employee Social Security numbers, credit card information, and other personally identifiable information. According to Arnold Law Firm, the allegations in the case include negligence, failure to implement adequate security measures, and tardiness in informing affected individuals.
The terms were deemed fair and reasonable, and U.S. District Judge Mary Rowland gave preliminary approval to the $21 million settlement in September. On February 6, the hearing for the suit’s final approval has been scheduled.
Gallagher will need to send the direct payment as they failed to inform customers of the breach
Gallagher failed to notify customers of the breach until June 2021, more than a year later, according to the plaintiffs. The data breach occurred nearly a year ago, putting clients at risk for an extended period of time. During that time, the hackers could have done a lot with the stolen data.
The plaintiffs pointed out that the case against Gallagher included multiple allegations of negligence, contract violations, and violations of state privacy laws.
The deadline for victims to submit claims via the claim website is February 10. Claimants must provide evidence of monetary damages in order to receive the $6000 portion of the $21 million settlement award.
Members of the class action lawsuit who did not suffer financial losses are entitled to at least $1 million in fraud and identity theft insurance, as well as three years of financial account monitoring services. In addition, individuals will receive a pro-rata settlement.
What is the responsibility of the company?
One of the main elements of the settlement is Arthur J. Gallagher’s commitment to improve their data security procedures in the future and fix the flaws that caused the breach. This case is an excellent example of how businesses must go above and beyond to protect customer data and hold themselves accountable.
Because almost everything is now digital in this technologically advanced era, businesses can store far more data and information than they could in the days of paper files.
Even though Arthur J. Gallagher & Co. has not admitted any wrongdoing, the large settlement they will receive is an important lesson for all businesses to learn. Rather than paying compensation and legal fees, it is far more cost effective to invest in cyber security to protect your data.
