clear
Wednesday November 21st, 2018 5:26AM

Uber agrees to $148M settlement with states over data breach

By The Associated Press
Related Articles
  Contact Editor

CHICAGO (AP) — Uber will pay $148 million and tighten data security after the ride-hailing company failed for a year to notify drivers that hackers had stolen their personal information, according to a settlement announced Wednesday.

Uber Technologies Inc. reached the agreement with all 50 states and the District of Columbia after a massive data breach in 2016. Instead of reporting it, Uber hid evidence of the theft and paid ransom to ensure the data wouldn't be misused.

"This is one of the most egregious cases we've ever seen in terms of notification; a yearlong delay is just inexcusable," Illinois Attorney General Lisa Madigan told The Associated Press. "And we're not going to put up with companies, Uber or any other company, completely ignoring our laws that require notification of data breaches."

Uber, whose GPS-tracked drivers pick up riders who summon them from cellphone apps, learned in November 2016 that hackers had accessed personal data, including driver's license information, for roughly 600,000 Uber drivers in the U.S. The company acknowledged the breach in November 2017, saying it paid $100,000 in ransom for the stolen information to be destroyed.

The hack also took the names, email addresses and cellphone numbers of 57 million riders around the world. After significant management changes in the past year, Tony West, Uber's chief legal officer, said the decision by current managers was "the right thing to do."

"It embodies the principles by which we are running our business today: transparency, integrity, and accountability," West said. "An important component of living up to those principles means taking responsibility for past mistakes, learning from them, and moving forward."

The settlement requires Uber to comply with state consumer protection laws safeguarding personal information and to immediately notify authorities in case of a breach; to establish methods to protect user data stored on third-party platforms and create strong password-protection policies. The company also will hire an outside firm to conduct an assessment of Uber's data security and implement its recommendations.

West said the commitments in the settlement coincide with physical and digital safety improvements the company recently announced. Uber hired a longtime in-house counsel for intel as chief its privacy officer and selected a former general counsel to the National Security Agency and director of the National Counterterrorism Center as the company's chief trust and security officer.

The settlement payout will be divided among the states based on the number of drivers each has. Illinois' share is $8.5 million, said Madigan, who plans to provide $100 to each affected Uber driver in Illinois. The payout was similar to what several other states had estimated.

___

O'Connor reported from Springfield, Illinois. AP Technology Writer Michael Liedtke contributed from San Francisco.

  • Associated Categories: U.S. News, Associated Press (AP), AP National News, AP Online National News, Top U.S. News short headlines, Top General short headlines, AP Business, AP Business - Consumer News
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
AP Interview: Hill says Kavanaugh isn't a #MeToo referendum
Anita Hill says she 'can't imagine' the upcoming Brett Kavanaugh Supreme Court confirmation hearing will be fair, but that it shouldn't be seen as a referendum on #MeToo
12:24PM ( 24 minutes ago )
New Florence flooding forecasts are good news for S Carolina
Predictions for the final communities in the path of Hurricane Florence's flooding aren't as dire as they once were
12:13PM ( 35 minutes ago )
Bill Cosby, now inmate NN7687, placed in single cell
Pennsylvania corrections officials say Bill Cosby will serve his sentence at a new state prison in the Philadelphia suburbs
11:33AM ( 1 hour ago )
U.S. News
Clemson QB Bryant transferring after losing starting job
Former Clemson starting quarterback Kelly Bryant leaving the 3rd-ranked Tigers after freshman Trevor Lawrence was named to start
12:38PM ( 9 minutes ago )
The Latest: Kavanaugh to deny sexual encounter with Ford
In testimony for Thursday's Senate hearing, Supreme Court nominee Brett Kavanaugh acknowledges drinking in high school with friends, but says he's never done anything "remotely resembling" the sexual misconduct alleged by his chief accuser
12:33PM ( 14 minutes ago )
The Latest: China rejects Trump charge of election meddling
China's foreign minister says his country doesn't interfere in any other nation's internal affairs
12:21PM ( 26 minutes ago )
Associated Press (AP)
Trump at UN backs separate states for Israel, Palestinians
President Donald Trump has for the first time since taking office endorsed a two-state solution as the best way to resolve the Israeli-Palestinian conflict
11:58AM ( 49 minutes ago )
Trump at UN endorses two states for Israel, Palestinians
President Donald Trump has for the first time since taking office endorsed a two-state solution as the best way to resolve the Israeli-Palestinian conflict
11:31AM ( 1 hour ago )
The Latest: Trump follows script at Security Council
President Donald Trump is following a detailed script as he convenes his first meeting of the United Nations Security Council
11:23AM ( 1 hour ago )
AP National News
Cosby trial was racist and sexist, comedian's defenders cry
Bill Cosby's defenders complain that his conviction and sentence stem from a racist and sexist justice system
8:09AM ( 4 hours ago )
Anita Hill: Kavanaugh hearing isn't a referendum on #MeToo
Anita Hill says she 'can't imagine' the upcoming Brett Kavanaugh Supreme Court confirmation hearing will be fair, but that it shouldn't be seen as a referendum on #MeToo
7:51AM ( 4 hours ago )
Cosby's defenders decry him as victim of racism and sexism
Bill Cosby's defenders complain that his conviction and sentence stem from a racist and sexist justice system
6:23AM ( 6 hours ago )
Top U.S. News short headlines
Happy news: Beluga whale in Thames eating, swimming well
Officials say the beluga whale spotted in the River Thames seems to be feeding properly and swimming strongly
10:00AM ( 2 hours ago )
The Latest: Trump would prefer faster Kavanaugh confirmation
President Donald Trump says he would have preferred a faster confirmation process for his Supreme Court nominee
9:41AM ( 3 hours ago )
Ford's lawyers submit 4 statements backing up assault story
Senate Republicans are beginning to schedule votes aimed at putting Brett Kavanaugh on the Supreme Court
9:28AM ( 3 hours ago )
Top General short headlines
Stocks hold steady as markets await Fed's interest-rate call
Stock markets were trading within narrow ranges Wednesday
11:34AM ( 1 hour ago )
Italian budget to promote growth, not seek austerity
Italy's economy minister says that the first budget by Italy's new government will include a basic income scheme sought by one of the main governing parties
11:22AM ( 1 hour ago )
After a lull, new-home sales up 3.5 percent in August
Sales of new US homes climbed 3.5 percent in August, driven by purchases in the Northeast and West
11:12AM ( 1 hour ago )
AP Business
AP Interview: Hill says Kavanaugh isn't a #MeToo referendum
Anita Hill says she 'can't imagine' the upcoming Brett Kavanaugh Supreme Court confirmation hearing will be fair, but that it shouldn't be seen as a referendum on #MeToo
12:24PM ( 24 minutes ago )
New Florence flooding forecasts are good news for S Carolina
Predictions for the final communities in the path of Hurricane Florence's flooding aren't as dire as they once were
12:13PM ( 35 minutes ago )
Bill Cosby, now inmate NN7687, placed in single cell
Pennsylvania corrections officials say Bill Cosby will serve his sentence at a new state prison in the Philadelphia suburbs
11:33AM ( 1 hour ago )
Senate panel opens hearing on crafting US privacy law
Executives of a half-dozen U.S. internet titans have been summoned by a Senate panel to explain their privacy policies as interest grows in Congress for the government to step in to protect consumers.
11:17AM ( 1 hour ago )
Senate panel to hear from internet execs on privacy policies
Executives of a half-dozen U.S. internet titans have been summoned by a Senate panel to explain their privacy policies as interest grows in Congress for the government to step in to protect consumers.
11:07AM ( 1 hour ago )