In May 2023, Paycom, a major payroll and HR software company, experienced a data breach that exposed sensitive personal information of many individuals. If you were impacted by this breach, you could be eligible for compensation of up to $4,200. In this article, we will guide you through the details of the breach, eligibility for compensation, and how you can claim your reimbursement.
What Happened in the Paycom Data Breach?
The Paycom data breach occurred between May 28 and June 2, 2023, due to a vulnerability in the MOVEit Transfer software. MOVEit is a popular file transfer application, and its security flaws resulted in the exposure of sensitive personal information, including names, Social Security numbers, and financial details. This breach put many individuals at risk of identity theft, fraud, and credit damage.
Who Is Eligible for Compensation?
If you were notified about the breach between July and October 2023, you might qualify for compensation. Eligibility is limited to U.S. residents who were impacted by the breach. If you received a formal notification from Paycom or a Paycom-affiliated company, you are likely eligible for compensation from the settlement.
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What Compensation Is Available?
Paycom has agreed to a $900,000 class-action settlement, which offers several ways for affected individuals to receive compensation. Depending on your circumstances, you may be eligible for different forms of reimbursement. Here’s a breakdown of the available options:
1. Reimbursement for Out-of-Pocket Losses (Up to $2,500)
If you incurred any direct expenses due to the breach, you could claim up to $2,500. Eligible expenses include:
- Fees for credit monitoring services.
- Costs for replacing lost or damaged documents (e.g., IDs or passports).
- Legal fees for consultations related to identity theft.
To claim this compensation, you will need to provide documentation such as receipts or credit card statements that show the costs incurred.
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2. Reimbursement for Time Spent (Up to $100)
Dealing with the aftermath of a data breach can take up valuable time. Paycom recognizes this and offers compensation for time spent handling breach-related issues, such as monitoring your credit or resolving fraudulent activities. You can claim:
- $25 per hour for up to four hours (a maximum of $100).
No documentation is required for this category, but you will need to provide a brief description of the actions you took and the total time spent.
3. Extraordinary Loss Reimbursement (Up to $4,200)
For individuals who experienced significant financial damage due to the breach, Paycom offers up to $4,200. This includes cases of identity theft, financial fraud, or other serious consequences like:
- Unauthorized transactions or withdrawals from your bank account.
- Long-term financial harm due to credit fraud.
- Extensive time and resources spent resolving identity theft issues.
To claim this compensation, you will need to provide substantial documentation, such as police reports or identity theft reports.
4. Three Years of Credit Monitoring Services
As part of the settlement, Paycom is offering three years of free credit monitoring to help protect your personal information in the future. This service can alert you to suspicious activity and help you manage your credit score.
5. Alternative Cash Payment ($25)
If you do not need any of the above options, you can request a $25 cash payment instead.
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How to Claim Your Compensation: A Step-by-Step Guide
To ensure that you receive your compensation, it’s essential to follow the claim process carefully. Here’s how to submit your claim:
Step 1: Gather Documentation
If you’re claiming out-of-pocket losses or extraordinary damages, gather supporting documents such as:
- Bank statements or receipts showing breach-related expenses.
- Police or identity theft reports if you’ve been a victim of fraud.
For time spent or the alternative cash payment, no documentation is needed.
Step 2: Visit the Official Claim Website
Go to the official Paycom Data Settlement website. You can fill out the claim form online or download a printable version if you prefer to submit your claim by mail.
Step 3: Complete the Claim Form
Fill out the form with your contact information and details of the compensation you are claiming. Be sure to provide accurate information about any losses or actions taken that support your claim.
Step 4: Submit the Claim
Submit your claim online by the deadline of November 7, 2024. If you’re mailing the claim, send it to the following address:
Paycom Data Settlement
Settlement Administrator
PO Box 25203
Santa Ana, CA 92799
Make sure your mailed claim is postmarked by the deadline to avoid disqualification.
Step 5: Await Confirmation
After submitting your claim, the Settlement Administrator will review it. The final payout amounts will depend on the total number of approved claims and the damages reported.
Frequently Asked Questions (FAQs)
1. When is the deadline to submit my claim?
The deadline to submit your claim is November 7, 2024. Be sure to submit all necessary forms and documents by this date.
2. How much compensation will I receive?
The amount you can receive depends on the type of compensation you qualify for. Claimants can receive anywhere from $25 to $4,200.
3. What proof do I need to submit for my claim?
For extraordinary losses and out-of-pocket expenses, you will need to provide documentation such as receipts, bank statements, or police reports. For time spent and alternative cash payments, no documentation is required.
4. How long will it take to receive payment?
After the final approval hearing on December 13, 2024, payments will be distributed. However, it may take several months for you to receive your compensation due to claim processing.
5. How can I contact the Settlement Administrator?
For assistance, you can reach the Settlement Administrator at 844-804-3284 or visit the official settlement website.
Conclusion
If you were impacted by the May 2023 Paycom data breach, you could be eligible for up to $4,200 in compensation. With a variety of compensation options available, including reimbursement for out-of-pocket losses, time spent, and extraordinary damages, it’s important to submit your claim before the November 7, 2024 deadline. Take action today to ensure you receive the compensation you deserve and protect your personal information moving forward.
