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Uber faces fines for concealing data hack

Uber faces fines for concealing data hack

CT is investigating a computer breach at auto hailing service Uber Technologies Inc [UBER.UL] that the company said it covered up after it was discovered in late 2016, a spokeswoman for state attorney general George Jepsen told Reuters on Wednesday.

U.S. Representative Frank Pallone called on Wednesday for a hearing into Uber Technologies Inc's handling of a breach that exposed data about drivers and riders.

Names, email addresses and mobile phone numbers of Uber riders were swiped by the hackers, the company said in a statement after a report by Bloomberg brought the hacking to light on Tuesday. However, the drivers license numbers of 600 000 drivers in the USA were compromised.

According to Bloomberg, hackers were paid £75,000 to delete the information.

The company's admission that it failed to disclose the breach came as Uber was seeking to recover from a series of crises that culminated in the Mr Kalanick's ousting in June.

The Uber announcement comes a few months after Equifax revealed that sensitive information of more than 143 million Americans had been exposed and is vulnerable to financial fraud.

According to a statement Uber released on Tuesday, two individuals outside the company inappropriately accessed user data stored on a third-party cloud-based service in October 2016 and downloaded files.




"While I can't erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes", Khosrowshahi said.

However, Uber did not reveal the incident to the public at the time. "I had the same question, so I immediately asked for a thorough investigation of what happened and how we handled it", Khosrowshahi wrote in a blog post.

"Effective today, two of the individuals who led the response to this incident are no longer with the company", he said. The New York attorney general has opened an investigation into the data breach, a spokeswoman said.

"If we do use the NDB legislation and its reporting properly, I would say in the future we will gather better empirical data around incidents and breaches that will give you better quality statistics and trends around this - particularly around the government sector, which often seems to be a bit of a black box".

The hack was discovered by an external team that was tasked with finding out the activities of Sullivan's security team which is said to have taken many decisions that have affected the company. Regulatory authorities were being notified, the company added.

Yahoo didn't make its first disclosure about hacks that hit 3 billion user accounts during 2013 and 2014 until September 2016. "Facing thousands of attacks daily, or even tens of thousands, it's a matter of when - not if - a breach will occur", said Gary Weiss, senior vice-president and general manager of the Security, Discovery and Analytics Business Unit at information management software firm OpenText.

"We are pressing them for the full details of what has happened so that we can be satisfied that all the right protections are in place for the personal data of drivers and customers in London", a Transport for London spokesman said. The hack didn't penetrate Uber's corporate systems or infrastructure, he said.


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