Yahoo agrees to pay $50 million to customers affected by biggest security breach in history

The now-defunct Yahoo has reached a $50 million settlement with 200 million U.S. residents whose personal data was stolen in the biggest known data breach in history. Customers will also get two years’ worth of free credit monitoring.

Hackers compromised some 3 billion Yahoo accounts between 2013 and 2014, a blunder so massive that one could compare it to the sinking of the Titanic. The breach not only marked the end of Yahoo as an independent company, it also shaved hundreds of millions off the sale price to telecommunications giant Verizon.

“The settlement reached in federal court in San Jose covers about 1 billion of those accounts held by an estimated 200 million people in the U.S. and Israel from 2012 through 2016,” SF Gate reports.

Parent company Verizon will pay half of the settlement cost, while rest will be taken care of by Altaba Inc., which holds Yahoo’s investments in Asia and other assets. The latter has already paid a $35 million fine to the Securities and Exchange Commission (SEC) for Yahoo’s failure to disclose the breach on time.

According to the preliminary settlement, the $50 million will compensate Yahoo account holders for documented losses at a rate of $25 per hour for time spent dealing with issues arising from the breach. Victims can ask for up to 15 hours of lost time, or $375. Customers who can’t document their losses can seek up to 5 hours, or $125.

Premium account holders (who paid $20 to $50 annually for a premium service) will be eligible for a 25% refund.

Additionally, all 200 million clients in this class action will get two years of free credit monitoring from AllClear, valued at about $15 per month.

*** This is a Security Bloggers Network syndicated blog from HOTforSecurity authored by Filip Truta. Read the original post at: