American Banking Systems (ABS) Data Breach $1.7M Class Action Settlement

American Banking Systems (ABS) has agreed to pay $1.7 million to resolve allegations that it failed to protect consumer data during a 2020 data breach.

The settlement benefits individuals whose personal information was compromised during the ABS data breach in October and November 2020.

American banking systems provides banking and compliance systems to financial institutions. In 2020, ABS was the victim of a ransomware cyberattack which affected many ABS customers.

The breachers dumped 53 GB of consumer data in an effort to take advantage of ABS payments. Compromised data included social security numbers, loan information, passwords, emails and more.

Some consumers affected by the data breach filed a lawsuit against ABS, arguing that the company failed in its obligations to protect their data. According to the plaintiffs, ABS could have prevented the breach with reasonable cybersecurity measures.

Consumers also took issue with how ABS handled the breach after it was discovered, saying the company should have notified affected consumers sooner. This additional time could have allowed consumers to better protect themselves against identity theft and fraud, the ABS class action said.

Plaintiffs in the class action have accused ABS of negligence, unjust enrichment and violation of various Oklahoma statutes.

ABS did not admit any wrongdoing, but agreed to resolve those allegations with a $1.7 million settlement.

Under the terms of the ABS Data Breach Settlement, Class Members may receive cash payment. Payments include compensation for documented inconveniences and losses.

For documented losses such as fraudulent charges, class members may receive up to $5,000. Applicants should include documents such as correspondence, statements, reports and others to maximize payments.

Inconvenience payments will vary based on the number of claims filed, with each class member receiving an equal share of the net settlement fund after costs and lost document payments.

The exclusion and objection deadline is June 30, 2022.

The ABS Data Breach Settlement Final Approval Hearing is scheduled for July 29, 2022.

In order to recover a payment, Class Members must submit a valid Claim Form by September 6, 2022.