Flagstar’s 2021 data breaches affected nearly 2.2 million people; eligible Americans have until August 11 to claim documented losses up to $25,000 from a proposed $31.5 million settlement

Flagstar Bank has agreed to a $31.5 million settlement to resolve class action lawsuits stemming from two major cyberattacks in 2021. The breaches, which affected millions of customers, involved unauthorized access to sensitive personal information. While the bank denies any wrongdoing, the settlement aims to compensate affected individuals for documented financial losses, such as fraud or identity theft expenses, with payouts reaching up to $25,000.

Eligible customers who cannot document specific financial losses may still receive residual payments, estimated between $60 and $599. Additionally, the settlement offers free credit monitoring services, including identity theft insurance and dark web monitoring. The first breach in January 2021 affected 1.4 million customers via a ransomware attack on the bank's Citrix environment, while a second breach in December 2021 impacted an additional 1.5 million people.

To receive compensation or credit monitoring, eligible individuals must submit a valid claim by the deadline of August 11, 2026. The final amount for each claimant will depend on the total number of approved claims and the remaining funds in the settlement pool after legal costs are covered.

(Source：Times of India)