Uber is coming clean about its cover-up of a year-old hacking attack that stole personal information about more than 57 million of the beleaguered ride-hailing service's customers and drivers.
So far, there's no evidence that the data
taken has been misused, according to a Tuesday blog post by Uber's
recently hired CEO, Dara Khosrowshahi. Part of the reason nothing
malicious has happened is because Uber acknowledges paying the hackers
$100,000 to destroy the stolen information.
The revelation marks the latest stain on
Uber's reputation. It also brought an investigation from New York's
attorney general and threats of larger-than-normal fines from British
authorities for failing to promptly disclose the hack.
The San Francisco company ousted Travis
Kalanick as CEO in June after an internal investigation concluded he had
built a culture that allowed female workers to be sexually harassed and
encouraged employees to push legal limits.
It's also the latest major breach involving a
prominent company that didn't notify the people that could be
potentially harmed for months or even years after the break-in occurred.
Yahoo didn't make its first disclosure about
hacks that hit 3 billion user accounts during 2013 and 2014 until
September 2016. Credit reporting service Equifax waited several months
before revealing this past September that hackers had carted off the
Social Security numbers of 145 million Americans.
Khosrowshahi criticized Uber's handling of its data theft in his blog post.
"While I can't erase the past, I can commit on
behalf of every Uber employee that we will learn from our mistakes,"
Khosrowshahi wrote. "We are changing the way we do business, putting
integrity at the core of every decision we make and working hard to earn
the trust of our customers."
That pledge shouldn't excuse Uber's previous
regime for its egregious behavior, said Sam Curry, chief security
officer for the computer security firm Cybereason.
"The truly scary thing here is that Uber paid a
bribe, essentially a ransom to make this breach go away, and they acted
as if they were above the law," Curry said. "Those people responsible
for the integrity and confidentiality of the data in-fact covered it
up."
The heist took the names, email addresses and
mobile phone numbers of 57 million riders around the world. The thieves
also nabbed the driver's license numbers of 600,000 Uber drivers in the
U.S.
Uber waited until Tuesday to begin notifying
the drivers with compromised driver's licenses, which can be
particularly useful for perpetrating identify theft. For that reason,
Uber will now pay for free credit-report monitoring and identity theft
protection services for the affected drivers.
Kalanick, who still sits on Uber's board of
directors, declined to comment on the data breach that took place in
October 2016. Uber says the response to the hack was handled by its
chief security officer, Joe Sullivan, a former federal prosecutor whom
Kalanick lured away from Facebook in 2015.
As part of his effort to set things right,
Khosrowshahi extracted Sullivan's resignation from Uber and also
jettisoned Craig Clark, a lawyer who reported to Sullivan.
Clark didn't immediately respond to a request
for comment sent through his LinkedIn profile. Efforts to reach Sullivan
were unsuccessful.
On Wednesday, New York Attorney General Eric
Schneiderman's office confirmed that it had opened an investigation into
the data theft, but a spokeswoman wouldn't comment further. New York
law requires that companies notify the attorney general and consumers if
data is stolen.
In London, Britain's Deputy Information
Commissioner James Dipple-Johnstone said Wednesday the company faces
"higher fines" because it concealed the hack from the public.
The Information Commissioner's Office and the
National Cyber Security Center are working to gauge the severity of the
problem for British Uber users.
Uber's silence about its breach came while it
was negotiating with the Federal Trade Commission about its handling of
its riders' information.
Earlier in 2016, the company reached a
settlement with the New York attorney general requiring it to take steps
to be more vigilant about protecting the information that its app
stores about its riders. As part of that settlement, Uber also paid a
$20,000 fine for waiting to notify five months about another data breach
that it discovered in September 2014.

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