Uber faces fines for concealing data hack

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This isn't his first run-in with the ride-hailing company - just a year ago his office reached a settlement with Uber over its collection and use of riders' personal information and its delayed disclosure of a 2014 data breach.

The common element of these breaches - use of a third-party cloud service - highlights the importance for companies to tightly control their use of such services, and to protect the data stored on them.

Compromised data from the October 2016 attack included names, email addresses and phone numbers of 50 million Uber riders around the world, the company told Bloomberg.

Earlier in 2016, the company reached a settlement with the NY attorney general requiring it to take steps to be more vigilant about protecting the information that its app stores about its riders.

No Social Security numbers, credit card information, trip location details or other data from riders was stolen, Uber said. Uber is also notifying all affected drivers and providing them with free credit monitoring and identity-theft protection, notifying regulatory authorities, and monitoring the affected accounts for fraudulent activity. But viewing this data breach cover up as an incident that only Uber could commit misses the writing on the wall.




In August of this year Uber reached a settlement with the Federal Trade Commission over allegations it made deceptive privacy and data security claims. The company paid $100,000 to the hackers to destroy the information, which Uber confirmed to NBC News. The hack introduces an unexpected factor in negotiations between SoftBank Group Corp. and Uber shareholders over a planned investment of as much as $10 billion, a deal Khosrowshahi has been championing.

The company demanded that the hackers sign nondisclosure agreements and then went on to disguise the payout fee as a 'bug bounty, ' The New York Times reports.

The San Francisco-based company also revealed on Tuesday that it had only learned recently that personal information from about 57 million Uber accounts had been stolen in 2016. The thieves also nabbed the driver's license numbers of 600,000 Uber drivers in the U.S.

Uber joined the likes of Google, Sony, Yahoo and Target among companies that have suffered massive data breaches from hackers in recent years.

"We are changing the way we do business, putting integrity at the core of every decision we make and working hard to earn the trust of our customers". "Interestingly here it's the fact that Uber covered up the breach that seems to have got people's backs up, clearly showing how important honesty is when dealing with such incidents".

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