You may be in line for a huge payout.
Flagstar Bank, a major regional bank with services like banking, mortgage, and wealth management, has agreed to settle a lawsuit after a January 2021 cyberattack. Cyber criminals were able to access sensitive information from just over 1.4 million Flagstar users.
Then in December of that same year, the New York bank fell victim to another cyberattack impacting over 1.5 million users. Victims quickly filed a suit that claimed Flagstar did not adequately protect their personal information and delayed in giving them notice.
While Flagstar has completely denied any wrongdoing on their part, the American bank has agreed to settle after a mediation process that was overseen by a retired federal judge. By settling, Flagstar will avoid the cost and uncertainty of a potential lengthy trial and any related appeals.
So, how much green is up for grabs? Flagstar has agreed to cough up $31.5 million where just over 2.1 million claimants can score checks. Payments range from $100 all the way up to $25,000.
In order to secure the bag, you must have received a notification detailing that your personal information was impacted in the breaches. These notices were sent to via electronic and/or directly mailed to all settlement class members.
For those who think they should be included, calling the Settlement Administrator at 1-855-542-0397 can clear things up. Just note that payment amounts will vary as what you receive depends on what you claim and how many valid claims are submitted.
Those likely to get the massive $25,000 check must have submitted documentation showing losses related to the 2021 data breaches. This means experiencing fraud, identity theft expenses or any credit monitoring costs.
Other folks will be receiving residual payments estimated around $60 but up to a $599 maximum. These claimants must submit a claim form where the final amount will be based on how much money remains in the settlement fund after other costs and claims are paid.
Those impacted in California will be in line for a check up to $100 if for anyone eligible who can prove they were affected and submit a claim. Anyone who is claiming is also eligible for free credit monitoring if they choose to add onto their claim form.
The full credit monitoring package includes:
- Three-bureau credit monitoring
- $1 million in identity theft insurance
- Dark web monitoring
- Fully managed identity restoration
- Member advisory services
- Lost wallet assistance
Just note that to get the cash and other services, all valid claim forms must be submitted by August 11, 2026. The settlement website also has a FAQ page with a slew of extra information about the notices sent out, what the settlement provides, eligibility requirements and more. A claim form is also easily accessible on the page.
Flagstar is an American bank that operates roughly 340 branch locations and is headquartered in Hicksville, New York
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