Individuals impacted by the 2021 USAA data breach have just over four weeks left to claim their portion of a $3.25 million settlement. Affected customers must submit a claim form through the official settlement website before the April 7 deadline to receive compensation.
Who Qualifies for a Settlement Payment?
If you were affected by the breach, you should have received a notification via email or postal mail from USAA following the settlement agreement in December 2024. This notice includes two critical identification numbers—a claimant ID code and a confirmation code—required to file your claim.
Failing to file by the deadline could mean missing out on compensation, and it also forfeits your right to take future legal action against USAA regarding this matter. However, in some cases, the settlement administrator may still attempt to distribute payments to eligible individuals even if no claim is filed.
Background on the Data Breach and Lawsuit
The breach stemmed from USAA’s use of motor vehicle records to auto-populate insurance quote forms, inadvertently allowing unauthorized individuals to access personal information. One such case involved Vincent Dolan, a USAA customer, whose identity was used by a stranger to create a fraudulent membership.
The breach occurred in May 2021, and Dolan filed a lawsuit two months after being notified. After years of legal proceedings in a New York federal court, the case was settled in August 2024 following a second round of negotiations.
How Much Will Affected Individuals Receive?
Payout amounts will vary depending on the number of claims submitted. Dolan, as the class action representative, is set to receive up to $10,000. Attorneys representing the impacted consumers may claim up to $35,000 in litigation expenses and are entitled to up to one-third of the settlement fund—potentially earning over $1.08 million.
If a significant number of eligible recipients do not claim their share, remaining funds could be redistributed in a second round of payments, provided each additional payment reaches at least $5 per claimant. Physical checks issued must be cashed within 60 days, or they will become void.
USAA’s Response to the Settlement
While agreeing to the financial settlement, USAA maintains that it was not at fault for the data breach.
“USAA takes our responsibility of protecting personal information seriously, and our security measures are continuously strengthened to prevent unauthorized access and use. This event occurred in 2021 and was part of industry-wide targeting by cybercriminals,” a USAA spokesperson stated. “At that time, USAA contacted all affected consumers and provided complimentary identity theft detection and resolution services. This settlement is in the best interest of our membership and allows USAA to avoid lengthy and expensive litigation.”
Frequently Asked Questions (FAQs)
1. How do I know if I’m eligible for a settlement payment?
If you were affected by the breach, you should have received a notification from USAA with instructions on how to claim your share. If you didn’t receive a notice but believe you were impacted, check with the settlement administrator for verification.
2. What is the deadline to file a claim?
The deadline to submit a claim is April 7, 2025. Late submissions will not be considered.
3. How do I file my claim?
You must complete and submit the claim form on the official settlement website using the provided claimant ID and confirmation code.
4. How much money will I receive?
The exact amount will depend on the total number of valid claims submitted. If not all eligible individuals file claims, additional payments may be issued to those who did.
5. Will I automatically receive a check if I don’t file a claim?
Not necessarily. While the settlement administrator may attempt to send payments to eligible individuals, failing to file a claim could result in missing out on compensation.
6. Can I still sue USAA for this data breach if I don’t accept the settlement?
No. By not opting out of the settlement, you waive your right to pursue separate legal action against USAA related to this breach.
7. What happens if I receive a check but don’t cash it in time?
Any physical checks must be cashed within 60 days of issuance. If not cashed in time, they become void, and you may lose your payment.
8. Where can I get more information?
Visit the official settlement website or contact the settlement administrator for further details and claim assistance.
With the deadline approaching fast, eligible individuals should act promptly to ensure they receive their rightful share of the settlement. Don’t wait until it’s too late—file your claim today!