Backchecked $535K Data Breach Class Action Settlement

I in the United States and your private information may have been affected by the September 2024 Backchecked data breach, you may be eligible to claim up to $2,500 from a class action settlement.

Backchecked LLC has agreed to pay $535,000 to settle a class action lawsuit filed after a targeted cyberattack on its computer systems. The complaint alleges that the attack exposed files containing personal information, including names, addresses, dates of birth, Social Security numbers and driver’s license numbers.

Who can file a claim for a data breach payout?

Class members are individuals residing in the United States whose personal information may have been impacted in the September 2024 Backchecked data breach.

How much are settlement payments?

Class members have the following benefit options:

• Credit monitoring: All class members can enroll in one year of three-bureau credit monitoring and identity protection services, which includes $1 million in identity theft insurance, real-time credit file and public records monitoring and dark web scanning.
• Cash payment A – Documented losses: Class members can claim up to $2,500 for documented losses traceable to the data breach that occurred between Sept. 26, 2024 and Aug. 26, 2026. Eligible losses include monetary losses caused by identity theft or fraud, fees for credit reports or credit monitoring, costs to replace IDs and postage to contact financial institutions.
• Cash payment B – Alternative cash payment: Class members who do not submit a documented losses claim can submit to receive a one-time pro rata cash payment of up to $50. The final payment amount will be determined by the number of claims filed.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or print the PDF claim form to complete and mail to the settlement administrator.

Settlement administrator’s mailing address: Backchecked Data Incident Settlement c/o Settlement Administrator P.O. Box 25226 Santa Ana, CA 92799-9958

The claim deadline is Aug. 26, 2026.

Required proof and claim information

• The unique ID and pin from the settlement notice is required to submit a claim online.
• Documented losses claims require supporting documentation, which may include receipts, invoices, bank or credit card statements showing unreimbursed fees of fraudulent charges and other proof of identity theft or fraud.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check mailed to the address provided

Settlement fund breakdown

The $535,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $178,333 plus litigation costs
• Service awards to class representatives: $2,500 each
• Credit monitoring: Cost determined by number of claims filed
• Payments to approved claimants: Remaining settlement funds

Important dates

• Deadline to opt out: Aug. 26, 2026
• Deadline to file a claim: Aug. 26, 2026
• Final approval hearing: Sept. 10, 2026

When is the Backchecked data breach settlement payout date?

Payments and credit monitoring benefits will be issued to approved claimants no later than 55 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit was filed after a targeted cyberattack on Backchecked’s computer systems in September 2024. The data breach may have exposed files containing private information, including names, addresses, dates of birth, Social Security numbers and driver’s license numbers. The plaintiffs alleged that Backchecked failed to adequately protect this sensitive data.

Backchecked denies the allegations, but agreed to settle to avoid the expense and risk of continued litigation.

Sources

1. Official settlement notice
2. Settlement website FAQ page
3. Claim form
4. Settlement agreement