Bank of Canton to Pay Up to $10K Each to Customers Affected by Data Breach
A Massachusetts-based financial institution has reached a settlement agreement to compensate customers affected by a cybersecurity incident that compromised their personal information. The Bank of Canton will distribute $300,000 among eligible claimants who experienced losses due to the alleged breach.
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According to the settlement documentation, customers who were existing, former, or prospective clients during the security incident can receive compensation based on their documented losses. Those who experienced ordinary losses may claim up to $2,500, while individuals who suffered extraordinary losses could receive compensation reaching $10,000.
Settlement Details and Deadlines
To qualify for compensation, claimants need to provide supporting documentation that demonstrates the financial impact they experienced from the breach. However, class members who prefer not to submit detailed documentation can choose to receive a flat payment of $100 instead.
The deadline for submitting claims is October 9th, with the final approval hearing scheduled in a Massachusetts court on October 21st. Once the court approves the settlement, eligible participants will receive their payments.
The Security Incident
The breach occurred around May 27th, 2023, when unauthorized individuals reportedly accessed MOVEit Transfer, a file transfer system utilized by one of the bank’s third-party service providers. This incident potentially exposed sensitive customer information, including account names, account numbers, and Social Security numbers.
I support the fine work that you do Eva, so I don't mean to sound harsh at all here, but I need to say it.
I read the article in the western standard, and listened to your phone call, and I think I understand what happened.
The process they have I think is a fairly good one,…
— Canadian Republic 🇨🇦 (@CanaRepublic) July 24, 2025
Following the discovery of the breach, affected parties filed a lawsuit in November 2023, alleging that the bank failed to implement adequate data security measures. While The Bank of Canton has agreed to the settlement terms, the institution maintains that it denies all allegations presented in the lawsuit.
