As I reported to you in March a tentative settlement was reached between Home Depot and the plaintiffs in a class action on behalf of the 56 million victims of Home Depot’s massive data breach which occurred between April and September of 2014. The tentative settlement provides for a 13 million dollar fund to reimburse victims for out of pocket losses incurred with an additional 6.5 million dollars being set aside for legal fees and other related expenses. Home Depot announced also agreed to provide eighteen months of free credit monitoring through security company All Clear ID to affected shoppers. You can receive payments through the settlement if you used your credit or debit card at a self checkout lane at Home Depot between April 10, 2014 and September 23, 2014 and your card information was stolen. You also are eligible for a payment if you received notification that your email address was compromised or if you specifically received a settlement notice informing you that you are a member of the class action. Payments of as much as $10,000 will be made to claimants who suffered out of pocket losses and unreimbursed charges as a result of the data breach. In addition, affected shoppers can receive payments of $15 per hour for time spent remedying the problems they encountered as a result of the data breach.
Similar to the major data breach at Target which occurred a year earlier, Home Depot’s computers and credit card processing equipment were hacked when a third party party vendor’s computers were hacked thereby enabling the hackers to steal the passwords necessary for the third party vendor’s to access Home Depot’s computers. As an additional part of the settlement Home Depot committed to make greater efforts at data security.
If you believe you are entitled to payment as a part of the class action, click on this link for more information and to get the claim form which must be filed by October 29th. http://www.homedepotbreachsettlement.com/frequently-asked-questions.aspx
A hearing on final approval of the settlement will occur on August 12th in the Federal District Court for Northern Georgia.
As for all of us, even if we were not a victim of this particular data breach, it is important to remember that we are only as safe as the places with which we do business that have the weakest security. Greater use of EMV smart chip credit cards will reduce the effects of data breaches aimed at gaining credit card and debit card information, but many stores still have not shifted over to the new equipment required to process EMV smart chip credit cards. However, whenever you can, you should use your EMV chip card.
Also, do not use your debit card for retail purchases. Limit its use to ATMs. There are strong laws to protect you from fraudulent use of your credit card, but the laws protecting you from liability in the event of fraudulent use of your debit card are not as strong and you potentially risk losing your entire bank account to which the card is attached. In addition, even if you report the fraudulent use of your debit card immediately, your bank will freeze your account while it investigates the breach which can be very inconvenient if you need immediate cash or have bills automatically paid from your account.