The digital parking payment application ParkMobile has settled for $32.8 million due to a 2021 data breach that compromised the personal information of over 20 million users.

A class action lawsuit was first initiated in a federal court in Georgia on May 25, 2021—two months after the company revealed the breach. The case was brought by Tyler Baker representing himself and others similarly affected, claiming he had noticed “unusual activity” in his PayPal account linked to ParkMobile and had to invest significant time addressing these issues, including updating passwords and monitoring his account.

The lawsuit accused ParkMobile of endangering consumers long-term by neglecting data security, which exposed them to risks like identity theft and fraud, thereby necessitating efforts to safeguard their connected accounts.

While ParkMobile’s settlement does not imply any admission of guilt, it indicates that the involved parties preferred this resolution over an extensive trial. Nevertheless, millions are available for claim.

Here’s how to claim your share from the ParkMobile data breach settlement.

Overview of the 2021 ParkMobile Data Breach

Launched in the U.S. in 2009, ParkMobile is a mobile and web application enabling users to pay for parking electronically. Since then, it has expanded to offer additional services, such as a parking reservation system, a self-service management platform for parking operators, and integration with Google Maps.

In March 2021, the company disclosed that it had suffered a “cybersecurity incident tied to a weakness in third-party software.” Subsequent legal actions revealed that the data of approximately 21 million users had been compromised.

Following the incident, ParkMobile reassured that “sensitive data,” including payment card numbers, had not been exposed. However, it was confirmed that users’ encrypted passwords were accessed, although the keys to decrypt them remained secure.

The leaked data was said to include license plate numbers, email addresses, phone numbers, vehicle nicknames, and, in limited instances, mailing addresses.

Court filings suggested that ParkMobile neglected security flaws in its systems, ignored industry standards, and failed to implement security recommendations proposed by experts, including those from the Federal Communications Commission.

After the breach, ParkMobile stated on November 15 that it began a thorough investigation and quickly addressed the third-party vulnerability.

On December 5, a link to the class action settlement was made available on their website.

YSL News contacted ParkMobile for additional comments.

Details of the ParkMobile Settlement

The total settlement amount is about $32.8 million.

ParkMobile will allocate $9 million for class members who submit claims, along with $300,000 for administrative expenses. An additional $21 million will be set aside for in-app credits to class members opting not to take cash payments.

Moreover, $2.5 million will be dedicated to enhancing ParkMobile’s security protocols.