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Uber paying a record USD148 million to settle data breach violations
Uber Technologies will pay out a record $148 million for its failure to disclose a huge data breach which it tried to cover up.
A settlement was reached with 50 U.S. states and Washington, D.C, bringing a close to one of its most embarrassing legal missteps.
A data breach captured 57 million Uber accounts, including 600,000 driver’s license numbers in 2016 but the company kept quiet and then paid off hackers to destroy the stolen data.
It violated data breach reporting and security laws and sparked condemnation across the US and overseas.
It was seen as a new low for Uber which has been no stranger to flouting laws and employing questionable business ethics.
It was finally revealed a year later when new CEO Dara Khosrowshahi took over, who said it should have been disclosed at the time.
Khosrowshahi fired two managers responsible for security and Uber has since hired a chief privacy officer.
"Uber’s decision to cover up this breach was a blatant violation of the public’s trust Consistent with its corporate culture at the time, Uber swept the breach under the rug in deliberate disregard of the law," California attorney general Xavier Becerra.
California will get a $26 million share of the record settlement.
"We know that earning the trust of our customers and the regulators we work with globally is no easy feat. We’ll continue to invest in protections to keep our customers and their data safe and secure, and we’re committed to maintaining a constructive and collaborative relationship with governments around the world," said Uber chief legal officer Tony West.
As part of the settlement Uber is required to report any data security incidents on a quarterly basis for the next two years and apply a robust security program managed by a senior executive.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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