CRA data breach: Some Canadians could be eligible for up to $5,000, compensation applications now open

Canada’s privacy watchdog reports more than 42Ktax account breaches since 2020, citing CRA gaps in prevention, detection & delayed multi-factor authentication.

OTTAWA — Thousands of eligible Canadians can now apply for compensation, after a months-long Canada Revenue Agency data breach in 2020 left their private information vulnerable to hackers.

According to a class action lawsuit settled in May, the confidential information of tens of thousands of Canadians was accessed by a third party from March 1 to Dec. 31, 2020. As a result of the lawsuit, the federal government agreed to pay out more than $8.7 million in compensation to affected Canadians.

“The lawsuit alleges that inadequate safeguards allowed unauthorized third parties to access confidential personal and financial information in Government of Canada Online Accounts, including CRA ‘My Account,’ My Service Canada accounts, and other accounts accessed using GCKey,” class action and claims administrator KPMG states on its website.

“In some cases, fraudulent applications for benefits were made,” KPMG also states. “The Government of Canada denies any wrongdoing.”

According to KPMG, the amount people are eligible to receive is dependent on the specifics of their case, and applicants fall into three categories.

Some Canadians are eligible for up to $80, for “time spent addressing issues related to unauthorized access,” while others are eligible for up to $200, for “time spent addressing fraudulent use of personal information,” and some are eligible for up to $5,000 out of a special compensation fund for “out-of-pocket expenses related to the breach (e.g., unreimbursed fraud losses, identity theft costs).”

For example, the Federal Court decision states there are 12,700 cases in which accounts were accessed and an unauthorized third party, who was able to change direct deposit and other relevant information to fraudulently apply for COVID-19 benefits.

“This settlement has been found to be fair, reasonable, and in the best interests of the class members,” reads a statement from the Treasury Board earlier this week. “It represents a compromise of disputed claims and is not an admission of wrongdoing.”

Eligible Canadians have until next February to submit a claim, and those with questions about their eligibility or how to apply can do so through KPMG.