Khaleej Times

Data breach cover-up: Uber to pay $148M

- Heather Somerville

san francisco — Uber Technologi­es will pay $148 million for failing to disclose a massive data breach in 2016, marking a costly resolution to one of the biggest embarrassm­ents and legal tangles the ride-hailing firm has suffered.

The settlement with 50 US states and Washington, DC brings closure to one of several high-stakes legal battles Uber is seeking to resolve before an initial public offering next year, while also delivering a national rebuke against Uber’s history of flouting laws and basic business ethics.

The amount is the largest among attorneys general settlement­s in privacy cases. By comparison, the multi-state settlement with Target in 2017, over a breach in which 41 million people had their data stolen, was $18.5 million.

The settlement follows a 10-month investigat­ion into a data breach that exposed personal data from 57 million Uber accounts, including 600,000 driver’s licence numbers. Uber’s new Chief Executive Dara Khosrowsha­hi disclosed the breach in November, more than a year after the company was hacked under the previous CEO. Khosrowsha­hi has said the incident should have been disclosed to regulators at the time it was discovered in 2016.

The cover-up, widely seen by states as violating data breach reporting and data security laws, drew the ire of authoritie­s across the US and also in the United Kingdom, Australia and the Philippine­s. About half of the data breach victims lived in the United States.

The settlement terms include changes to Uber’s business practices aimed at preventing future breaches and reforming its corporate culture. Uber will be required to report any data security incidents to states on a quarterly basis for the next two years, and implement a comprehens­ive informatio­n security program overseen by an executive officer who advises executive staff and Uber’s board of directors.

“We know that earning the trust of our customers and the regulators we work with globally is no easy feat,” said Uber chief legal officer Tony West. “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.” —

 ?? AP ?? Personal data of about 57 million Uber accounts were exposed in 2016. —
AP Personal data of about 57 million Uber accounts were exposed in 2016. —

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