• Uber admitted to hiding a 2016 data hack that affected 57 million users, including both drivers and passengers.
• On Friday, shares of Uber closed at $23.30, down 93 cents.
Uber Updates: As part of a deal with US prosecutors to avoid criminal charges, Uber Technologies admitted responsibility for concealing a 2016 data breach that affected 57 million users and drivers on Friday.
In a non-prosecution agreement, Uber acknowledged that, despite the US Federal Trade Commission’s ongoing investigation into the ridesharing company’s data security, its staff did not notify it of the hacking in November 2016.Uber reported the breach after around a year, according to US Attorney Stephanie Hinds in San Francisco, after appointing new executive leadership that “set a strong tone from the top” about ethics and compliance.
Hinds claimed that Uber’s 2018 agreement with the FTC to maintain a thorough privacy programme for 20 years and the new management’s swift inquiry and disclosures were key factors in the decision not to prosecute the company.The San Francis co-based business is also supporting the prosecution of Joseph Sullivan, a former security chief, for his alleged role in covering up the hacking.Requests for comment from Uber did not immediately receive a response.
Sullivan was first charged in September of 2020. The hackers were given $100,000 (approximately Rs. 79,89,350) in Bitcoin, according to the prosecution, and were made to sign nondisclosure agreements that falsely claimed they had not stolen any data.Uber had a bug bounty programme that was not meant to cover up data thefts but to reward security researchers who disclose bugs.In September 2018, Uber agreed to pay $148 million (approximately Rs. 1,182 crore) to resolve charges that it took too long to reveal the hacking from all 50 US states and Washington, D.C.On Friday, Uber stock fell 93 cents to settle at $23.30 (about Rs. 1,800). The non-prosecution deal was made public following the close of US markets.