How Equifax's $700 million settlement could end up compensating you for ID theft

Americans will now get compensation for losses tied to one of the biggest data security failures ever.

Credit-reporting company Equifax has agreed to pick up the tab in a proposed deal with the Federal Trade Commission, Consumer Financial Protection Bureau and 50 states and territories to settle allegations that it did not implement sufficient security measures to protect its network. The settlement still must be approved by the U.S. District Court for the Northern District of Georgia.

The deal calls for Equifax to pay at least $575 million, including $300...