T-Mobile data breach: They owe you money—here’s how to claim it

In 2021, T-Mobile experienced a massive data breach that exposed the personal information of approximately 76 million customers. In response, the company has agreed to provide $350 million in compensation to affected customers.

Below is a detailed guide on everything people commonly ask about the T-Mobile data breach and the resulting compensation—so you can determine if you’re eligible and what steps to take.

What happened?

• Timeline: The breach occurred in August 2021.
• Nature of the attack: A hacker named John Binns, based in Turkey, exploited a misconfigured router to infiltrate T-Mobile’s internal network.
• Scope: Over 76 million individuals were affected, including current, former, and prospective T-Mobile customers.
• Data exposed:
  • Names
  • Addresses
  • Dates of birth
  • Social Security numbers
  • Driver’s license numbers
  • For some prepaid customers: phone numbers and account PINs

Why is this significant?

• Repeated incidents: T-Mobile has reported multiple breaches since 2018, making customers wary about the company’s cybersecurity practices.
• Trust and reputation: Data breaches can significantly damage public trust; T-Mobile’s decision to pay compensation reflects an effort to rebuild confidence and address ongoing legal pressures.

What led to the settlement?

Thousands of affected customers filed a class-action lawsuit alleging inadequate data security at T-Mobile. Rather than dispute the case in court, T-Mobile agreed to settle for $350 million, plus an additional $150 million devoted to enhancing its cybersecurity infrastructure.

Who is eligible?

• Affected individuals: Anyone who used T-Mobile in 2021, including former or prospective customers, may be eligible—especially if your personal data was compromised in the breach.
• California residents: Californians may receive a slightly higher base payment ($100) due to state privacy laws.
• Out-of-pocket losses: If you can document expenses or losses related to identity theft or fraud resulting from the breach, you could claim up to $25,000.

How much can people receive?

Generally $25 for most class members, $100 for Californians. Some of these amounts can vary depending on the number of valid claims.

Up to $25,000 for documented out-of-pocket expenses, such as credit monitoring fees, legal fees, or unreimbursed fraudulent charges.

Two years of free credit monitoring and identity restoration support may also be available to affected customers.

Do I need to do anything to receive payment?

Many customers who are part of the class will receive a direct payout without additional steps, provided T-Mobile or the settlement administrator has your current address and payment details.

If you incurred out-of-pocket losses, you must file a claim form documenting those expenses. Check the official settlement website or contact the administrator to learn how to submit this information.

How do I know if I was affected?

T-Mobile has sent letters or emails to those affected by the breach, though the communication method varies depending on the state and customer status. To confirm whether your information was part of the breach, you can use the lookup feature available on the official settlement website.

What if I missed the deadline to file a claim?

Settlement notices typically include strict cutoffs, meaning if you missed the filing deadline for out-of-pocket losses, you may only be eligible for the base payment, provided you are still part of the class. In some cases, courts might grant extensions, though this is not guaranteed. To check if any grace periods are available, visit the settlement website or contact the administrator.

When will payments be sent out?

Payments are expected to begin in April, following the year in which the settlement is finalized. As of March 2025, recent reports suggest that payouts are either underway or imminent. Payments may be distributed via check or digital platforms such as PayPal, Venmo, or prepaid cards. Stay alert for official communications to ensure you recognize the payment source.

Is the settlement legitimate?

The settlement was granted final approval by a federal judge in Kansas City, Missouri, on June 29, 2023. A third-party settlement administrator, appointed by the court, manages payouts and ensures fair distribution. For verification, you can visit the settlement website or call 1-833-512-2314.

What steps should I take to protect myself?

If you haven’t already, it’s important to enroll in the free identity protection services offered through the settlement. Additionally, consider placing a fraud alert or credit freeze on your accounts, particularly if your Social Security number was compromised. If you remain a T-Mobile customer, updating your PIN to something more complex and monitoring your account for unusual activity is also recommended.

Additional legal and regulatory actions

• FCC settlement: In 2024, T-Mobile reached a $31.5 million settlement with the Federal Communications Commission over multiple breaches, including the 2021 incident. T-Mobile agreed to improve cybersecurity by implementing multi-factor authentication and a zero-trust security model.
• Washington State lawsuit: Filed in 2025, Washington State Attorney General sued T-Mobile, alleging that the company downplayed breach impacts and ignored known security flaws. This lawsuit may lead to further penalties and mandatory cybersecurity upgrades.
• CFIUS fine: In August 2024, the Committee on Foreign Investment in the U.S. fined T-Mobile $60 million for failing to prevent or properly report unauthorized data access, tied to obligations from the 2020 Sprint acquisition.

Practical steps for affected customers

1. Check your eligibility: Visit the official T-Mobile Data Breach Settlement website or call 1-833-512-2314.
2. File or confirm your claim:
   • If you experienced financial harm, have documentation ready (receipts, bank statements, etc.).
   • If you are unsure, verify you are on the settlement list and confirm your payment details.
3. Monitor your accounts:
   • Consider opting in for the free identity protection if offered.
   • Regularly review bank statements, credit reports, and T-Mobile account activity.
4. Stay informed:
   • Watch for official notices by mail or email regarding payout updates.
   • Follow reputable sources or the settlement website for any changes in the distribution timeline.

The T-Mobile data breach was a large-scale cybersecurity incident that exposed sensitive information of millions of customers. In response, T-Mobile agreed to a $350 million settlement to provide compensation to those affected, highlighting the seriousness of the event and its impact on consumer trust.

If you believe you were affected or have any questions, be sure to check the official settlement website or contact the administrator at 1-833-512-2314.

Featured image credit: Mika Baumeister/Unsplash