September 25, 2017

Home Depot to pay $25M in data breach settlement

A federal judge has issued final approval on a $25 million settlement between Home Depot and financial institutions involved in a class action lawsuit against the company. The lawsuit stemmed from a 2014 data breach where hackers stole customers' payment information from self-checkout machines.

The settlement was preliminarily approved in March. Numerous credit unions were part of the class action lawsuit, and affected credit unions had until Sept. 14 to file a claim in the settlement.

In addition to the $25 million settlement fund, Home Depot will pay $2.25 million to sponsored entities whose claims were released in connection with Mastercard's Account Data Compromise program. Home Depot also agreed to implement stricter data security measures to better protect consumers' personal information.

Those entitled to part of the settlement can expect payouts to begin within 90 days.

NAFCU is continuing to push for a national data security standard as hacks similar to this in recent years have revealed millions of Americans' personal financial information. NAFCU is also working with Congress and regulators to ensure any new data security regulations do not burden credit unions.