New Details As 1.5 Million In CT Exposed In Equifax Data Breach

CONNECTICUT — About 1.5 million Connecticut residents are among those eligible for restitution from the $700 million settlement over the Equifax security breach. But here's the rub:

You may not get that cash payout from Equifax that has been talked about.

The credit reporting company has opened an online portal where impacted consumers can file claims online. The step was taken after a multi-state investigation into what is one of the largest breaches ever of consumer data showed that the sensitive information of an estimated 56 percent of adults was compromised.

Here is what happened, as a result:

• Equifax offered victims of its data breach the option of up to $125 in cash or free credit-monitoring as part of a settlement. The company, however, experienced what authorities called an "overwhelming response."
• Millions visited the data breach settlement site online to file claims in the week since the page went live, the Federal Trade Commission reported.
• Federal officials say there is now a $31 million cap on how much the company can pay out to those seeking reimbursement for credit monitoring.
• Each person who takes the money option will now wind up only getting a small amount of money, nowhere near the $125 they could have gotten if there hadn't been such an enormous number of claims filed, according to the FTC.
• Theoretically, if the 147 million people affected asked for the $125 payout and qualified, they would each receive $0.21.

"So, if you haven't submitted your claim yet, think about opting for the free credit monitoring instead," the FTC advised. "Frankly, the free credit monitoring is worth a lot more – the market value would be hundreds of dollars a year. And this monitoring service is probably stronger and more helpful than any you may have already, because it monitors your credit report at all three nationwide credit reporting agencies, and it comes with up to $1 million in identity theft insurance and individualized identity restoration services."

A separate pot of money is available for those who have paid out-of-pocket for services like hiring someone to help with identity theft or credit freezes, according to the FTC, which advised those people to use documents to submit their claims.

"There is still money available under the settlement to reimburse people for what they paid out of their pocket to recover from the breach,"the FTC said.

Benefits will not be distributed until at the earliest Jan. 23, 2020, a date set by the court.

Investigators found that Equifax failed to patch a vulnerability in its security monitoring system that went undetected for 76 days in 2017. The breach exposed the Social Security numbers, names, dates of birth, addresses, credit card numbers and/or driver's license numbers of more than 1.5 million Connecticut residents and more than 147 million Americans nationwide.

"Equifax ignored its security obligations and exposed the personal information of half of the American people," said Connecticut Attorney General William Tong. "This settlement—the largest data breach enforcement action in history-- sends a clear message that failure to implement reasonable security measures will not be tolerated and that cybersecurity cannot be overlooked."

Equifax agreed to pay a total of $175 million to states that were part of the suit, including $4.785 millionmillion for Connecticut. An additional $425 million was set aside for individual customer restitution.

These are some of the services Equifax initially offered to those affected as part of the restitution plan, according to the settlement agreement:

• Free credit-monitoring services for 10 years to those impacted. Those who already have credit-monitoring may apply for a $125 credit.
• Cash payments up to $20,000.
• Seven years of identity-restoration services.

The settlement outlines measures Equifax must take to protect personal data, including weekly security checks and reports as well as studying ways to reduce reliance on Social Security numbers. It must also handle the millions of claims filed by affected customers.

What To Do If Impacted By The Equifax Breach

Equifax has a tool so people can check whether they were impacted by the Equifax breach and are eligible for part of the settlement.
Those impacted can file a claim with Equifax on the settlement page.
There is also a portal through the Federal Trade Commission dedicated to the Equifax data breach settlement, where the claims page became active Wednesday, July 24.

How To Protect Your Personal Information

These steps can help protect your information, according to the Federal Trade Commission:

• Get a free credit report at www.annualcreditreport.com or by calling 877-322-8228.
• Call the Equifax settlement administrator at 1-833-759-2982.
• Take advantage of any free services being offered as a result of the breach.
• Use two-factor authentication on your online accounts whenever available.
• Consider a credit freeze.
• Monitor your accounts.

With reporting by Elizabeth Janney, Patch