Uber to pay $148 million in data breach settlement

(FILES) In this file photo taken on May 8, 2018 the Uber logo is seen at the second annual Uber Elevate Summit at the Skirball Center in Los Angeles, California. Uber made a move into electric scooters on July 9, 2018, as the ride-service giant agreed to a strategic partnership with Lime, one of the major players in the fast-growing segment.Lime announced the new $335 million investment to be led by GV -- formerly Google Ventures -- with additional funding from Google parent Alphabet and others including Uber. / AFP PHOTO / Robyn BeckROBYN BECK/AFP/Getty Images

Uber has agreed to pay $148 million to settle a data breach that affected some 57 million customers in 2016.

The agreement was with the attorneys general of all 50 states and the District of Columbia to resolve their legal inquiries on this matter, Uber’s chief legal officer Tony West said in a statement released Thursday.

The data breach affected 50 million riders and 7 million drivers; around 600,000 driver license numbers for U.S. drivers were also included in the breach.

Uber response and cover up of the breach led to the firing of Joe Sullivan, the company’s chief security officer at the time. Uber didn’t report the incident that occurred in October 2016. Instead, the company paid hackers $100,000 to get rid of the evidence and keep the data breach a secret, which Bloomberg first reported.

The data breach and ensuing cover up was revealed in November, more than a year after it had occurred and just a few months after Dara Khosrowshahi had taken the CEO position.

West noted that Uber under Khosrowshahi has worked to improve safety and security following the scandal.

Uber hired Ruby Zefo as chief privacy officer and Matt Olsen and as chief trust and security officer.

The hiring of Zefo, who led Intel’s global  privacy and security legal team, and Olsen is part of the company’s mission to move past an embarrassing data breach, as well as other weak privacy practices employed by former CEO Travis Kalanick, who resigned in 2017 after a string of scandals. In April, Uber expanded a proposed settlement made with the Federal Trade Commission pertaining to data mishandling, privacy and security complaints that date back to 2014 and 2015. That proposed settlement happened prior to Uber’s disclosure of the 2016 data breach.

Source: TechCrunch

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