Uber revealed on Tuesday that hackers stole the personal data of 57 million users, declining to announce that it paid the same hackers $100,000 to delete the data and keep things quiet.
There are serious legal ramifications for Uber's decision not to immediately disclose the data breach.
Forensic analysis confirmed that the names and driver's license numbers of around 600,000 USA drivers, as well as personal information about 57m users - including names, email addresses and mobile phone numbers - had been compromised. The stolen data included 600,000 USA drivers' licence numbers, but no social security numbers, trip locations or other data. "Companies like Uber will not be able to hide the breaches of our personal data from us or face penalty", she said, without mentioning a sum for an European Union fine for Uber.
They did not say, however, how hackers assured the company the stolen data was destroyed. The hackers pulled it off by accessing a private GitHub coding site used by Uber software engineers and stealing login credential, which were then used to access data stored on an Amazon Web Services account. "While I can't erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes", Khosrowshahi reassured.
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However, more than a fifth (21 percent) of respondents felt that such incidents probably happen all the time and so Uber's situation didn't bother them and over a quarter (27 percent) felt it was annoying but wouldn't stop them from using the service.
"It doesn't appear that happened here", he said.
One of those actions was to terminate the two unnamed employees whose responsibility it was to respond security incidents, including the one that occurred in late 2016.
New York Attorney General Eric Schneiderman on Tuesday launched an investigation into the incident. More states and the Federal Trade Commission, which had settled with Uber over another privacy matter in August, will probably pile on, said Jeremiah Grossman, chief of security strategy at SentinelOne Inc., which aids companies with cyber-defense.
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Uber fired its chief security officer, Joe Sullivan, this week for the data breach coverup.
Khosrowshahi said that what he learned about Uber's failure to notify users or regulators prompted corrective actions.
According to security firm Venafi, the breach at Uber is an example of how unprotected machine identities can lead to data breaches. For instance, it's expected ransomware payments - paying hackers to unlock files after a cyberattack - will top $2 billion this year, according to new research from cybersecurity firm Bitdefender. It was also in blue moon due to the sexual harassment case.
Law enforcement advises companies to not pay hackers and report breaches to the authorities.
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Khosrowshahi inherited a litany of scandals and a toxic workplace culture when he replaced Kalanick.