Individuals affected by the 2021 USAA data breach have just over four weeks to claim their portion of a $3.25 million settlement. Those eligible must submit a claim through a designated website before the April 7 deadline to receive compensation.
How to Check if You’re Eligible
If you were impacted by the data breach, USAA should have notified you via email or postal mail after the settlement was finalized in December 2024. This notification includes two essential ID numbers—a claimant ID code and a confirmation code—which are required to complete your claim.
Failing to file by the deadline could mean forfeiting your compensation. While the settlement administrator may attempt to locate eligible individuals, taking no action means you also waive any right to sue USAA over this incident in the future.
Background of the Data Breach and Lawsuit
The breach, which occurred in May 2021, exposed the personal data of 22,000 USAA customers. The issue stemmed from USAA’s use of motor vehicle records to auto-populate information—such as driver’s license numbers—into its insurance quote system. This vulnerability allowed a third party to access a customer’s information and create a membership account under their name without their knowledge.
Vincent Dolan, a USAA customer, discovered that his personal data had been used without his consent. He filed a lawsuit against the company two months after being notified of the breach. The legal battle continued for over three years in a New York federal court before a second round of settlement negotiations in August 2023 led to an agreement.
Payouts and Settlement Details
As the lead plaintiff, Dolan is set to receive up to $10,000 for his role in initiating the case. Meanwhile, attorneys representing affected customers may claim up to $35,000 in litigation expenses and receive attorney’s fees capped at one-third of the total settlement fund—potentially netting them around $1.08 million.
For eligible claimants, the exact payout depends on the number of people who file for compensation. If a significant number of individuals opt out, remaining claimants could receive a second round of payments, provided the additional amount totals at least $5 per person.
However, claimants should be aware that any physical checks must be cashed within 60 days of issuance to avoid voiding.
USAA’s Response
Despite agreeing to the settlement, USAA denies any wrongdoing. The company states that the breach was part of an industry-wide cybercriminal attack and maintains that it has since strengthened its security measures.
“USAA takes our responsibility of protecting personal information seriously, and our security measures are continuously strengthened to prevent unauthorized access and use,” a USAA spokesperson said. “This settlement is in the best interest of our membership and allows USAA to avoid lengthy and expensive litigation.”
Frequently Asked Questions (FAQs)
Q: How do I know if I qualify for a settlement payment?
A: If you were affected, USAA should have notified you via email or postal mail with a claimant ID and confirmation code. These codes are necessary to file your claim.
Q: What is the deadline to file a claim?
A: The deadline to submit a claim is April 7, 2025. Missing this deadline may result in losing your compensation and the right to take further legal action against USAA over this breach.
Q: How much money will I receive?
A: The exact amount depends on the number of people who file claims. If fewer people claim their share, remaining claimants may receive additional funds.
Q: Will I automatically receive a payment if I don’t file a claim?
A: Not necessarily. While the settlement administrator may try to distribute payments, failing to file a claim means you risk not receiving any money.
Q: How will I receive my settlement payment?
A: Payments may be issued via direct deposit or mailed check. Be sure to cash any check within 60 days to avoid forfeiting the funds.
Q: Is USAA admitting to wrongdoing?
A: No, USAA maintains that it was not at fault but agreed to the settlement to avoid prolonged litigation.
If you believe you are eligible, make sure to file your claim before the April 7 deadline to secure your share of the settlement.