Uber Escapes With No FTC Fines Over 2016 Data Breach It Paid $100000 to Cover Up

Photo: AP

The Federal Trade Commission will not levy fines on ride-sharing hulk Uber over a large information crack it paid hackers $100,000 to cover up, CNN Money reported this week.

According to CNN, a FTC has concluded to enhance a before allotment concerning Uber’s information practices and a crack in 2014 to embody a 2016 breach, that concerned information on during slightest 57 million customers. Despite there now being dual apart incidents on a record, a FTC has somehow opted to usually kinda advise Uber not to lift these shenanigans again, CNN reported:

Uber will have to forewarn a FTC if patron information is unprotected in any destiny incidents or hacks. Uber is not on a offshoot for any payments or fines underneath a agreement. However, if a association fails to forewarn a FTC of another breach, it could face polite penalties.

Under a stretched settlement, all third-party audits of Uber’s remoteness module will be sent to a FTC. The agreement will be posted publicly and open to criticism for 30 days, after that a FTC can make it official.

In a statement, behaving FTC executive Maureen Ohlhausen wrote, “After dubious consumers about a remoteness and confidence practices, Uber compounded a bungle by unwell to surprise a Commission that it suffered another information crack in 2016 while a Commission was questioning a company’s strikingly identical 2014 breach.”

This means a many poignant consequences for anyone obliged for a matter are expected a dual employees who reportedly mislaid their jobs over a incident, arch of confidence Joe Sullivan and warn Craig Clark.

Per USA Today, both a 2014 and 2016 incidents concerned engineers who stored patron information on Github, an open source formula repository. The 2016 occurrence unprotected patron names and email addresses, as good as a permit numbers of some 600,000 US-based drivers.


Uber paid out $100,000 to hackers who accessed a information in sell for their silence, and former CEO Travis Kalanick reportedly buried a incident so deeply that incoming inheritor Dara Khosrowshahi usually detected it after holding control. (Nonetheless, Khosrowshahi waited months to divulge a crack to a public.) Uber was negotiating with a FTC over a 2014 occurrence during a time news of a 2016 crack emerged.

Per Wired, a FTC has singular coercion energy in a box of initial violations. There’s small a group could do though bluster fines over a 2014 incident—but a preference to let Uber off easy over a 2016 one is generally curious, saying as it happened immediately after a FTC sealed their before investigation.

“It appears they disregarded a FTC agree sequence before a ink was dry on it,” Ballard Spahr authorised confidant Ed McAndrew told CNET.


Uber might not get off with no financial penalties per se. The association is confronting multiple lawsuits over a breach, including one filed by a city of Los Angeles.

[CNN Money]

Posted in
Tagged . Bookmark the permalink.
short link time2sports.com/?p=13841.