The California Attorney General’s office reported today that Uber will pay $148 million to resolve claims related to a 2016 data breach that Uber concealed. In addition to failing to report the breach, Uber paid the hackers $100,000 as part of the cover-up. The breach involved the information of 57 million customers and drivers. According to reports, the $148 million will be shared with other states participating in the nationwide investigation. This 2016 breach and a 2014 breach involving a failure to employ reasonable security practices already caught the attention of the Federal Trade Commission (FTC). Uber agreed to resolve those claims earlier this year. Also related to the 2014 breach, Uber caught a break when a judge tossed a class action suit for lack of standing in May.
Uber suffered a data breach in 2014 resulting in the compromise of more than 50,000 drivers’ personal information, including back account and social security numbers. Drivers brought a class action suit in federal court in the U.S. District Court for the Northern District of California. On May 10, a judge tossed the suit for a third time for lack of standing because the two named plaintiffs failed to allege that they suffered an injury in fact. Continue Reading Uber Catches Break in Data Breach Class Action
In August, 2017, the Federal Trade Commission (“FTC”) proposed a settlement agreement with Uber stemming from its investigation of a 2014 data breach due to Uber’s “unreasonable security practices”. The lengthy investigation found that Uber’s employees were accessing customer’s personal information, and that there were security lapses in Uber’s third-party cloud storage service. That settlement agreement required Uber to implement a “comprehensive privacy program”; however, the agreement was withdrawn by the FTC and amended recently. Why, you ask? Uber experienced a second data breach in 2016, while the investigation from the 2014 breach was well underway. The 2016 breach was a result of those same security lapses in the third-party cloud storage service and Uber waited over one year to report that second breach. Uber’s handling of the second breach continued its trail of misconduct, clearly demonstrating that the company had not learned its lesson. Continue Reading Uber Goes 0-2 in Data Breach Notifications