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Kelly Benefits Data Breach: What 550,000 People Should Know

Kelly Benefits’ 2024 breach involved files accessed and copied over six days. Here’s how the reported 550,000 figure was reached and what affected people should know about the proposed settlement and claim deadlines.
From TheFinanceBase Team4 min to read
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Kelly Benefits’ investigation found unauthorized access to certain files from December 12 through December 17, 2024. A July 2025 report citing a filing with Maine’s attorney general put the number of affected people at more than 553,000—the basis for the rounded “550,000” figure. The proposed class-action settlement is not yet finally approved, and anyone seeking benefits must submit a valid claim by the applicable deadline.

What happened in the Kelly Benefits data breach?

Kelly & Associates Insurance Group, Inc., doing business as Kelly Benefits, provides benefits-related services. The company’s account, reproduced in the court-authorized settlement FAQ, says it learned of suspicious activity on or about December 12, 2024. Its investigation found unauthorized access from December 12 through December 17, during which certain files were copied and taken. Kelly Benefits said it completed a detailed review and matched affected information to individuals and clients or carriers on March 3, 2025. Settlement FAQ

A sample notice filed with Delaware says the company used third-party forensic specialists, reported the incident to the FBI, and offered affected recipients identity-protection services through IDX. The notice also advised recipients to review account statements and free credit reports. It is a sample template, so it does not establish which data or service duration applied to every recipient. Sample notice filed with Delaware

What information may have been exposed?

The categories identified in the settlement FAQ include names, Social Security numbers, tax ID numbers, dates of birth, medical information, health-insurance information, financial-account information, and other sensitive identifying information. The data varied by person; the list does not mean every affected individual had every type of information exposed. If you received a notice, use it to identify the specific data elements associated with you. Settlement FAQ

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Why is the breach described as affecting 550,000 people?

SecurityWeek reported on July 2, 2025, that Kelly Benefits’ latest filing with the Maine attorney general showed more than 553,000 affected individuals. That reported regulatory figure is commonly rounded to 550,000; it is not a nationwide total displayed on the settlement website. SecurityWeek described earlier reported counts rising from 32,000 to 260,000, then to more than 410,000 in early May and 488,000 in late May. The sources reviewed do not establish a later final count. SecurityWeek’s July 2, 2025 report

Delaware’s breach database separately lists Kelly & Associates entries of 1,651 and 2,399 potentially affected Delaware residents. Those are state-specific entries and should not be added to or substituted for the reported nationwide figure. Delaware breach database

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What does the proposed settlement offer?

The case is In re: Kelly Benefits Data Breach Litigation, Case No. 1:25-cv-01304-SAG, in the U.S. District Court for the District of Maryland. The settlement website says the proposed class generally covers U.S. residents whose private information was compromised in the incident between December 12 and December 17, 2024, subject to exclusions and valid opt-outs. The court-authorized site says a settlement has been reached, but final approval remains for the court to decide. Plaintiffs allege negligence, negligence per se, breach of third-party beneficiary contract, and unjust enrichment; Kelly Benefits denies the allegations and wrongdoing. These are the parties’ positions, not findings in plaintiffs’ favor. Settlement website

The proposed $5 million fund includes several potential benefits. The amounts below are proposed terms, not guaranteed payments; the fund also covers administration expenses, service awards, and attorneys’ fees and costs. Settlement website

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Benefit Proposed terms What to know
Documented monetary losses Up to $5,000 per class member Supporting documentation is required.
Pro rata payment Estimated $50 Final amount depends on the number of valid claims.
California statutory payment Estimated $100 Eligibility restrictions apply.
Credit monitoring Included among the proposed benefits Check the settlement site for service terms and eligibility.

How to choose: claim, opt out, or object

Your choice affects whether you can receive settlement benefits and whether you retain the ability to pursue claims resolved by the settlement. Read the current notice and settlement documents before deciding.

  • Submit a claim: A valid, timely claim is required to receive settlement benefits. Choose the applicable benefit and provide any required documentation.
  • Opt out: Excluding yourself preserves the right to sue over claims resolved by the settlement, but you give up settlement benefits.
  • Object: You can tell the court why you oppose the proposed settlement while remaining in the class, subject to the court’s procedures and deadlines.
  • Do nothing: You receive no settlement benefits and give up the right to sue over released claims if the settlement becomes final.

The settlement FAQ states: “The Court has not decided in favor of the Plaintiffs or Defendant.” That is wording from the court-authorized FAQ, not a spoken quotation from the judge. Settlement FAQ

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What are the claim and court deadlines?

The authorized settlement site lists the following dates. The site says the fairness-hearing date may change. Its pages conflict on the deadline for mailed claims: the home page and documents index say December 31, 2026, while the FAQ says December 28, 2026. For a paper claim, follow the current claim form and administrator instructions rather than relying on the conflicting FAQ date. Check the site for updates before acting. Settlement website Settlement documents

Action Deadline listed
Request exclusion or submit an objection November 27, 2026, postmarked
Submit an online claim December 28, 2026
Mail a paper claim Documents index: postmarked by December 31, 2026; FAQ: December 28, 2026
Final fairness hearing January 12, 2027, at 10:00 a.m. ET; date may change

How to file a Kelly Benefits settlement claim

  1. Go to the court-authorized settlement website and review the current eligibility terms, claim form, and administrator instructions.
  2. Use the notice or other information requested by the form to confirm your eligibility and identify the benefit you are claiming.
  3. If you request reimbursement for monetary losses, gather and submit the supporting documentation the claim form requires.
  4. Submit the form online by the listed online deadline, or mail it according to the current form’s instructions. Because the website pages differ on the paper-claim postmark date, use the current claim form and administrator instructions.
  5. Keep a copy of the completed claim and any submission confirmation or mailing proof.

What to do if you received a breach notice

Use the notice to see which information was associated with you and what identity-protection service, if any, was offered to you. The sample notice advised recipients to review financial-account statements and free credit reports. You can also use the free reports available through AnnualCreditReport.com. The notice and settlement information do not establish that every recipient needs to purchase a separate monitoring product.

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  • Re Inking Unlimitedly: the information blocker stamp can cover information of the length about 100 meters. And each security stamper roller has an oil hole, so you don't have to worry about you having to throw away the roller stamps when the ink runs out. They can be refilled with oil for repeated use, saving time and energy
  • Cover Fast: our identity protection rollers come in 2 different sizes, and you can choose different sizes according to different areas of information to cover large amounts of private information in a fast and clean way, avoiding identity theft and rejecting privacy disclosure harassment
  • Easy to Use: just remove the lid on the ID stamp blocker roller and open it, and then gently slide it on the place where the information needs to be covered. It is suitable for most ordinary paper with black words, and can protect your personal privacy in time
  • Save Time and Energy: compared with the shredder, the personal confidential stamp has a small size, easy to carry, can be applied anytime and anywhere. Compared to the marker, it covers a larger area and can be quickly covered with a single swipe. There is no need to worry about whether you can not protect your privacy in time

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