Settlement scammers target Facebook and AT&T payouts to steal data

Sometimes data breaches result in more than just free credit monitoring. Recently, Facebook began paying its $725 million settlement and AT&T is preparing to distribute $177 million. These payments have attracted the attention of fraudsters.

Now, fake claims emails and websites are flooding inboxes. They look convincing, but behind their simple design and official-sounding language lies a trap for your Social Security number, banking information, and more. So how can you be sure to get your money without losing even more in the process?

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TOP 5 OVERPAYMENT SCAMS TO AVOID

Why fake colonization sites are so convincing

Settlement claims websites rarely look neat. Most have generic layouts, long URLs, and simple forms requesting a claim ID from your email or postcard. This makes it easy for fraudsters to imitate them. To test how simple it is, we created a fake checkout site (below) in minutes using AI tools like ChatGPT.

To steal your data, fraudsters create fake checkout sites that imitate real sites (Kurt “CyberGuy” Knutsson)

If we succeed, you can be sure that criminals are already exploiting the same shortcuts. Facebook was the target. A fake site popped up around the Equifax colony one day, fooling thousands of people before it was shut down. The lesson? If the site looks unusual, that doesn’t necessarily mean it’s fake, but it should prompt you to check before you enter your details or click on a link.

Red flags that reveal fake implantation sites

Spotting a scam often comes down to noticing the little details. Watch for these common warning signs before submitting your information.

Requests for too much personal data

If a site asks for your full Social Security number or your children’s names, stop. For example, Equifax’s official policy only required the last six digits of SSNs. Real complaint sites may ask for limited information (like the last four digits of your SSN), but they rarely require full Social Security or banking information.

Promises payment estimates in advance

Real administrators calculate payments only after the claim period closes.

Text messages or messages on social networks

Settlements are announced by mail or email, not random texts or DMs.

Fraud can be detected by red flags like strange URLs, urgent countdowns, or fee requests. (Kurt “CyberGuy” Knutsson)

Odd or misspelled URLs

Even an extra letter in the web address is a sign of a scam site. Legitimate colonies use official or clearly named admin domains. Be wary of addresses with unusual add-ons, such as “secure-pay” or “claims-pay”.

Urgent or countdown language

Scammers rely on urgency to force you to act quickly. Real implant sites do not require 24-hour turnaround times.

Checkboxes for processing fees

A gift sure to be fake. Real settlement administrators never need money to deposit or receive your payment.

Cheap trust badges

Fraudulent sites often advertise fake “secure” seals. Look for recognized security seals and make sure they are clickable and verifiable.

Generic contact information related to the suspicious domain

The official sites list several verifiable contacts. If the email or phone number matches the strange domain, that’s a red flag.

Grammar or spelling errors in the fine print

Sloppy errors in legal-sounding text are a classic sign that you’re dealing with a scam.

Start with official FTC links or mailed notices to file complaints securely (Kurt “CyberGuy” Knutsson)

How to Securely Manage Settlement Claim Notices

Before filing a claim, follow these steps to ensure you are dealing with a legitimate settlement site and protecting your information.

1) Start with the FTC

The Federal Trade Commission maintains lists of approved class action settlements at ftc.gov/enforcement/refunds. Legitimate links always point to a .gov website. If your email sends you elsewhere, treat it with caution.

2) Cross-reference with other resources

Reliable outlets often cover large population centers and include secure links. ClassAction.org is another resource for checking legitimate URLs.

3) Skip the links, use mail

Your notice of claim may include a mailing address. Submitting a paper form completely avoids the minefield of digital phishing.

4) Use powerful antivirus software

Powerful antivirus software can block malicious links, warn you of dangerous websites, and prevent malware from taking over your device.

The best way to protect yourself from malicious links that install malware and potentially access your private information is to install powerful antivirus software on all your devices. This protection can also alert you to phishing emails and ransomware scams, protecting your personal information and digital assets.

Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android, and iOS devices at CyberGuy.com.

HOW RETIRES CAN STOP FALSE DEBT COLLECTOR SCAMS

5) Try a Data Deletion Service

Data removal services remove your personal information from broker lists, making it more difficult for criminals to target you.

Although no service can guarantee the complete removal of your data from the Internet, a data deletion service is definitely a wise choice. They’re not cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically deleting your personal information across hundreds of websites. This is what gives me peace of mind and has proven to be the most effective way to erase your personal data from the Internet. By limiting the information available, you reduce the risk of fraudsters cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data deletion services and get a free scan to find out if your personal information is already available on the web by visiting CyberGuy.com.

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6) Never pay to deposit

If a site charges an “administrative fee” or “processing fee,” shut it down immediately. Real settlement administrators will never ask for money.

7) Report suspicious sites

Spot a fake? Protect others by reporting it to:

• The FTC Complaint Assistant at reportfraud.ftc.gov/
• The Internet Crime Complaint Center (IC3) at ic3.gov/
• The Consumer Financial Protection Bureau (CFPB) consumerfinance.gov/about-us/the-bureau/

Prompt reporting helps authorities stop scams before more people fall victim.

Can you tell a real email from a fake one?

Take our quick quiz on Cyberguy.com/ScamCheck to learn how to spot phishing scams, protect your inbox, and stay one step ahead of hackers.

Kurt’s Key Takeaways

Class action settlements may seem like rare victories for consumers after data breaches. But scammers see it as an easy hunting ground. The best defense is skepticism. Check URLs, avoid clicking on direct links, and never disclose details that do not match the purpose of the complaint. Your payment should help you recover, not put you at greater risk.

Have you ever received a payment notice that seemed suspicious to you and how did you handle it? Let us know by writing to us at CyberGuy.com.

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