The infamous Target hack affected over 100 million customers, and some of them might finally see some restitution. A judge in Minnesota approved a preliminary settlement that requires Target to pay out as much as $10 million to consumers.
That might sound like good news for consumers affected by the breach. But, it's unlikely that many customers will actually see much money. Of the people who file a claim, most will likely come away with $100 or less, according to Brian Yarbrough, consumer research analyst with Edward Jones. That's because it's up to you to prove that you had a financial loss associated with the hack and that's tough to do.
When a fraudulent charge is made on a credit card, consumers don't generally end up paying for it. If the fraud is caught by the credit card company before it goes through, it never hits their card. If it does go through and the consumer reports it, it's almost always removed if it's reported within a reasonable amount of time.
The settlement also requires Target to hire a chief information officer, take additional steps to keep customer information safe and pay over $7 million in plaintiffs' legal fees.
If you were a victim of the cyberattack on Target, getting your piece of the pie isn't going to be easy. You will have to submit a claim that demonstrates your loss explicitly. It has to include plenty of information and documentation proving the following:
• Unauthorized, unreimbursed charges on credit or debit cards.
• Time addressing unauthorized charges.
• Costs to hire someone to help correct credit reports.
• Higher interest rates on account or higher rates paid.
• Loss of access or restricted access to funds.
• Fees paid on accounts.
• Credit-related costs such as credit monitoring or purchasing credit reports.
Under the settlement, Target is required to issue notices about the claims filing process on widely read outlets like People, Better Homes & Gardens and Facebook.