Anthem Agrees to Record-Breaking Data Breach Settlement
Athem agrees to pay a recording-setting $115 million as a result of a 2015 cyber attack which compromised the data of nearly 80 million people.
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In February 2015, Anthem, Inc. (NYSE: ANTM) was the target of a successful cyber attack which compromised the information of 78.8 million individuals consisting of current and former customers and employees.
According to Wikipedia, Anthem Inc. is an American health insurance company founded in the 1940s, prior to 2014 known as WellPoint, Inc. It is the largest for-profit managed health care company in the Blue Cross and Blue Shield Association.
The 2015 attack led to a probe by the Federal Bureau of Investigation (FBI), because the leaked information included names, birth dates, social security numbers, medical IDs, and address information (location and email addresses). The employee information that was compromised included employee data - including income amount.
When the attack was announced, those impacted were offered free credit monitoring services through a web-site Anthem provided, called anthemfacts.com.
As a result of the attack, Anthem has agreed on a settlement to pay a record-breaking $115 million to resolve consumer claims making it the largest data-breach settlement to date. The settlement, if approved by a federal judge in San Jose CA, will end class-action lawsuits filed across the United States over Anthem's inability to protect customer data. As a result of the settlement, Anthem does not have to admit to any wrongdoing.
The settlement also requires Anthem to establish a fund which will pay for at least two years of credit monitoring for those impacted by the situation. Individuals who already participate in a credit monitoring service are eligible to receive as much as $50 per impacted individual. The plan also requires Anthem to help protect impacted members' personal information for the next three years.
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