Capital One Data Breach: Are You Entitled to Compensation? Settlement Details

In the wake of the 2019 Capital One data breach, which compromised the personal information of approximately 98 million U.S. customers and 6 million Canadian customers, many are asking: “Capital One Data Breach: Are You Entitled to Compensation? Settlement Details”. This large-scale incident has led to significant legal action, resulting in settlements aimed at compensating those affected. If you were a Capital One customer between 2005 and 2019, understanding your eligibility for compensation and the details of these settlements is crucial.

What Happened in the 2019 Capital One Data Breach?

In July 2019, Capital One announced a massive data breach where a hacker gained unauthorized access to the personal information of millions of its customers and credit card applicants. The breach, which occurred between March 12 and July 17, 2019, exposed a wide range of sensitive data, including:

Names
Addresses
Phone numbers
Email addresses
Dates of birth
Self-reported income
Credit scores
Credit limits
Balances and payment history
Social Security numbers (for approximately 140,000 U.S. customers)
Bank account numbers (for approximately 80,000 U.S. customers)
Social Insurance Numbers (for approximately 1 million Canadian customers)

The hacker, Paige Thompson, a former Amazon Web Services employee, exploited a misconfigured firewall to access the data stored on Capital One’s cloud servers. Thompson was later arrested and charged with computer fraud and abuse.

Initial $190 Million Settlement

In response to the breach, a class-action lawsuit was filed against Capital One, alleging that the bank failed to implement adequate cybersecurity measures to protect customer data. Without admitting wrongdoing, Capital One agreed to a \$190 million settlement to resolve the claims.

Who Was Eligible?

The settlement aimed to compensate approximately 98 million Capital One customers whose information was compromised in the 2019 data breach. Notification was sent to those whose Social Security/social insurance or bank account numbers were exposed.

Compensation Details:

Eligible class members could claim compensation for:

Out-of-pocket losses: Reimbursement for expenses incurred due to the data breach, such as fraud charges, identity theft prevention services, and professional fees (up to \$25,000 with documentation).
Lost time: Compensation for time spent dealing with the breach-related issues (at least \$25 per hour for up to 15 hours).
Identity theft protection services: Three years of free identity defense services through Pango, including identity monitoring, lost wallet protection, dark web monitoring, account restoration, and security freeze capabilities.

Important Deadlines:

Claim Filing Deadline: September 30, 2022.
Final Approval Granted: September 13, 2022.

Where Are We Now?

Payments to claimants with eligible claims were issued beginning on September 28, 2023, with a second payment on September 4, 2024, for those who accepted the initial payment. All payment activities related to this settlement have been completed, and no further payment reissue requests are being accepted. Uncashed checks are now void and cannot be reissued.

The only active benefits currently available to Settlement Class Members are Identity Defense Services and/or Restoration Services provided by the Settlement, which have been extended through February 13, 2028.

The \$425 Million Class Action Settlement in 2025

In 2025, Capital One reached another significant milestone in addressing the fallout from the 2019 data breach and related issues. A new class action settlement totaling \$425 million was announced, aiming to compensate customers affected by both the data breach and allegations of misleading advertising related to Capital One’s 360 Savings accounts.

Terms of the \$425 Million Settlement:

The \$425 million settlement is structured into two primary components:

\$300 Million in Cash Payments: Customers with 360 Savings accounts are slated to receive direct cash payouts. These payments are intended to cover the interest income they would have accrued had they transitioned to a higher-yield account.
\$125 Million in Increased Interest Payments: Customers who choose to maintain their funds in the 360 Savings accounts will receive additional interest payments as a form of compensation. Furthermore, those who opt to close their accounts by October 2, 2025, are set to receive an additional 15% in payout as an incentive.

Eligibility for the \$425M Settlement

The settlement is available to anyone who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025.
Customers affected by the 2019 data breach are automatically eligible.

How Much Will Each Customer Receive?

The payout amount will vary based on individual circumstances, including:

Account balances
Interest rate history
The duration of reduced-rate participation

Payments will reflect the difference between actual and expected interest earnings. Customers who closed their accounts before October 2, 2025, will receive approximately 15% more in compensation compared to those who keep their accounts open.

Important Dates and Timeline:

October 2, 2025: Deadline to verify details and select payment preferences.
November 6, 2025: Scheduled court hearing for final approval of the settlement.
Early 2026: Expected start of payments and interest adjustments after court approval.

What If You Missed the Claim Deadlines?

If you missed the deadlines for filing a claim in the initial \$190 million settlement, you are no longer eligible for direct monetary compensation from that settlement. The claim filing period, payment reissue period, and other administrative options are now closed. However, you may still be able to enroll in the free Identity Defense Services until February 13, 2028.

For the \$425 million settlement, eligible customers will receive payments automatically, without needing to submit a claim form. However, it’s crucial to verify your details and select your payment preferences by October 2, 2025, to ensure smooth processing.

Capital One’s New Security Measures

In response to the 2019 data breach, Capital One has taken steps to enhance its data protection policies and security measures, including:

Advanced encryption for storing and transmitting customer data.
Multi-factor authentication for all sensitive access points.
Improved cloud security standards.
Continuous monitoring of security systems to prevent future breaches.

What Can You Do to Protect Yourself?

Regardless of whether you are eligible for compensation from the Capital One data breach settlements, it’s essential to take proactive steps to protect your personal and financial information:

Monitor your credit report: Regularly check your credit report for any signs of suspicious activity or unauthorized accounts.
Enable credit monitoring: Sign up for credit monitoring services to receive alerts about changes to your credit report.
Be cautious of phishing scams: Be wary of suspicious emails, phone calls, or text messages asking for your personal information.
Use strong, unique passwords: Create strong, unique passwords for all your online accounts and avoid reusing passwords across multiple sites.
Enable multi-factor authentication: Whenever possible, enable multi-factor authentication to add an extra layer of security to your accounts.
Stay informed: Keep up-to-date on the latest data breach news and cybersecurity threats.

Conclusion

The Capital One data breach was a significant event that affected millions of people. While the settlements provide some compensation for those impacted, they also serve as a reminder of the importance of data security and the need for companies to protect their customers’ personal information. By understanding your rights and taking proactive steps to safeguard your data, you can minimize your risk of becoming a victim of future data breaches.