Still Using Uber? You Might Want to Read This

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When Uber paid a $100,000 ransom so that hackers who broke into its data warehouse would destroy the personal information they stole, it allowed the ride-sharing company to keep a massive breach of 57 million user and driver accounts secret for almost a year.

Khosrowshahi took over the company in September after embattled Uber co-founder Travis Kalanick stepped down as CEO in the summer.

Dowling says mistakes and breaches are bound to happen in the technology field, and if they do the company should be honest about it.

It is the latest disclosure of a major breach involving a prominent company.

The data breach occurred when two individual hackers accessed information stored on a third-party cloud-based service used by Uber, Khosrowshahi wrote.

Uber says it paid hackers $100,000 after they stole data previous year on 57 million of its users.

"Deliberately concealing breaches from regulators and citizens could attract higher fines for companies", said deputy commissioner James Dipple-Johnstone.

They also managed to download the names and driver's licence numbers of around 600,000 drivers in the US. "It doesn't address the underlying problem in your own organization - your security practices need revision and you're failing to adequately protect your assets including your own proprietary information, and your customers' data".

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"It's always the company's responsibility to identify when United Kingdom citizens have been affected as part of a data breach and take steps to reduce any harm to consumers". Further, the FTC said Uber did not properly monitor employee access to customer information.

Uber is now negotiating a deal with a consortium led by SoftBank and Dragoneer Investment Group that plans to inject $1bn to $1.25bn into Uber, according to Reuters, but industry commentators said the reportedly tough negotiations could get tougher in the light of news of the breach.

Vera Jourova, the European Union commissioner in charge of data, said Uber's failure to come clean about the breach showed why the new data protection law was needed.

The company's reputation has already been dragged through the mud this year, and for many, the breach and cover-up was the icing on the cake. Is a ransomware attack technically a data breach? The state's Consumer Protection and Anti-trust Bureau on Wednesday opened an investigation into the case of hackers stealing the personal data of 57 million customers and drivers from Uber. Fifty-seven million people is a significant chunk of Uber's user base, which hit 40 million monthly active riders a year ago.

"The fact that they hid it for such a long time that doesn't seem like good business to me", said Daly.

Grossman says the breach may not change consumer behavior, but it will be costly for the company.

The company's chief security officer Joe Sullivan has parted ways with the company following the announcement, the BBC reports.

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