Yahoo Reaches Data Breach Settlement

More than 3 billion Yahoo account holders were affected by the data hacks, which occurred between 2012 and 2016. And a $117.5 million settlement has been proposed.

Remember the massive Yahoo data breaches? More than 3 billion Yahoo account holders were affected by the data hacks, which occurred between 2012 and 2016 and are believed to be the largest breaches to date. Now a settlement is finally at hand. Yahoo, which is now part of Verizon Communications, has proposed a $117.5 million settlement.

If you received a notice that your account was compromised, or you simply had a Yahoo account between January 1, 2012, and December 31, 2016, you may be eligible for two years of free credit monitoring or a payment of $100 if you’ve already signed up for a credit-monitoring service. You can also apply for reimbursement if you spent money on a credit freeze (which is now free but wasn’t at the time of the breach) or incurred other expenses associated with ID theft, such as attorney’s fees. Be prepared to document those costs, says Charity Lacey, of the Identity Theft Resource Center (opens in new tab).

The deadline to file a claim is July 20, 2020. If you want to reserve the right to sue Yahoo individually, the deadline to exclude yourself from the settlement is March 6. This is not a case in which filing early will increase your shot at compensation (as with the Equifax deal), so take all the time you need to gather supporting documents, Lacey says. The more documents you provide, the better your chances of receiving compensation. For more information, go to yahoodatabreachsettlement.com (opens in new tab).

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Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.