Uber Data Hack
Uber was hacked, losing data on 57 million driver and rider accounts. The company kept it quiet for over a year. The details are particularly damning:
The two hackers stole data about the company’s riders and drivers —including phone numbers, email addresses and names—from a third-party server and then approached Uber and demanded $100,000 to delete their copy of the data, the employees said.
Uber acquiesced to the demands, and then went further. The company tracked down the hackers and pushed them to sign nondisclosure agreements, according to the people familiar with the matter. To further conceal the damage, Uber executives also made it appear as if the payout had been part of a “bug bounty”—a common practice among technology companies in which they pay hackers to attack their software to test for soft spots.
And almost certainly illegal:
While it is not illegal to pay money to hackers, Uber may have violated several laws in its interaction with them.
By demanding that the hackers destroy the stolen data, Uber may have violated a Federal Trade Commission rule on breach disclosure that prohibits companies from destroying any forensic evidence in the course of their investigation.
The company may have also violated state breach disclosure laws by not disclosing the theft of Uber drivers’ stolen data. If the data stolen was not encrypted, Uber would have been required by California state law to disclose that driver’s license data from its drivers had been stolen in the course of the hacking.