Uber was one of the latest companies to be hit with a major data breach controversy. The breach, which happened more than two years ago, has harmed at least 57 million customers and resulted in attorneys general across the nation filing a suit against the company for security and privacy violations.
Now, the company has agreed to pay a large sum of money in damages to those affected. As the world moves forward in a climate of constant threat from hackers, identity theft and security leaks, this settlement may well be a sign of things to come. Let’s look at the Uber data breach settlement of $148 million, the events that led to this controversy and what it might mean for the future of online security.
Uber Data Breach of 2016
In 2016, Uber was the subject of a data breach which directly affected over 7 million drivers and 50 million riders across the platform. It also released the driver’s license numbers of about 600,000 people. Uber’s response to the issue was not the best. They were found to have engaged in a major cover-up and attempted to hide what happened.
Instead of reporting the incident and attempting to protect their customers and drivers, the company hired hackers whom they paid upwards of $100,000 to remove the evidence and keep it a secret. This cover-up, when it came to light over a year later, resulted in the firing of Joe Sullivan, Chief Security Officer of the company.
New CEO, New Policies
The controversy came to light just a few months after the company installed a new CEO, Dara Khosrowshahi, following the resignation of Travis Kalanick under the shadow of many scandals. The company subsequently took steps to overcome the scandal, as well as greatly improving security and safety, hiring Ruby Zefo as Chief Privacy Officer, and Matt Olsen as new Chief Security Officer and Chief Trust Officer. Zefo, who is best known for having previously led the privacy and security legal team at Intel, has taken great strides in restoring the company’s reputation.
The Proposed Settlement
The first time a settlement was proposed to the Federal Trade Commission occurred before the reveal of the 2016 scandal and pertained to other security, privacy and information mishandling scandals dating all the way back to 2014. In April, Uber expanded the proposed settlement to take into account the current scandal.
The settlement now sits at $148 million and has been accepted by attorneys general in all fifty states as well as the District of Columbia. It should resolve legal inquiries related to the matter. This record-breaking settlement will be split among the states. It sets a new zero-tolerance policy for companies who don’t behave with transparency in these situations.
If you’ve been involved in an accident or complication with Uber or other ridesharing services in the San Francisco area, the Gruber Law Group can help. Contact us today and we’ll be glad to sit down for a free consultation about the details of your case.
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