$25 for Every Marriott Customer. Maybe.
Jennifer Billock December 03, 2018
Hacker in the action on his laptop computer
Marriott is facing a backlash from customers thanks to the data breach the company suffered at the hands of hackers; at least two lawsuits have been filed, and one of them is asking for millions of dollars – enough to give everyone who was affected by the breach $25 as a way to compensate them for the trouble.
Last week, Marriott announced a massive data breach: 500 million customers’ information was compromised. Only a few hours later, two lawsuits were filed against the company. One comes from Oregon, where two men are seeking $12.5 billion in costs and losses. The goal of the lawsuit is to give every person affected by the breach $25, to account for the time they’ll have to spend cancelling credit cards as a result.
The other lawsuit comes from Maryland, filed by a law firm, and more are expected in the coming months. The amount requested by the Maryland lawsuit has not been released.
This breach is tied for the second-largest hack in history. Guests who stayed at Starwood hotels over the past four years were affected. Those specific brands include W Hotels, St. Regis, Sheraton Hotels & Resorts, Westin Hotels & Resorts, Element Hotels, Aloft Hotels, The Luxury Collection, Tribute Portfolio, Le Méridien Hotels & Resorts, Four Points by Sheraton and Design Hotels, according to ZDNet.
Personal data for all 500 million customers was compromised, and the company is not yet sure how many of them also had financial data stolen, though they don’t think it’s more than 327 million.
[Photo: Shutterstock]
I don't know if this is related or coincidental, but I was notified yesterday by AMEX that my SPG AMEX card (which I had on file with SPG) had just had an attempted charge (which they declined) for a small amount attempted at Walgreen's. The number was keyed in (so no card present, which would be consistent with a hacked file, but also with a fat-finger error). AMEX has a block on future charges on that account for the time being to see if other attempts are made. They advise that issuing a replacement (new) account number would be easy to do, and would not require me to notify firms with which I am using that card for monthly charges. We'll see what develops.
Marriott, like any smart business, will then raise rates enough to cover the expense of the settlement and legal costs. Meaning we all pay so some sleazy lawyers can make a buck
"Two men are seeking $12.5 billion in costs and losses. The goal of the lawsuit is to give every person affected by the breach $25" 500,000,000 people x $25 = $12.5 billion. Except the lawyers will probably take 1/3 to 1/2 so even if they get the entire amount they asked for it's probably more like $10-$15 per person and $5-$7 billion to the lawyers. "$25, to account for the time they’ll have to spend cancelling credit cards as a result." I guarantee that the amount of time cancelling credit cards will pale in comparison with the time for paperwork to claim the $10-$15. And that $10-$15 could just as easily end up as a credit on future hotel visits.