Already reeling under pressure from the allegations of sexual assault and kidnapping by over 550 women, ride-hailing platform Uber on Saturday admitted that it knew about the data breach in 2016 that affected 57 million customers and yet failed to inform the public or US Federal Trade Commission (FTC).
Reportedly, Uber has confessed to the US prosecutors to avoid being levelled with criminal charges, as part of a settlement. When quizzed about how Uber had escaped the criminal charges, Stephanie Hinds, United States Attorney for the Northern District of California stated that the new management of Uber, that took charge in the aftermath of the hacking incident cooperated properly and made informed disclosures.
Furthermore, the new management in 2018 committed FTC to maintain an extensive privacy program for the next twenty years.
Reportedly, in late 2016, two hackers into Uber and stole personal data, including phone numbers, email addresses, and names of the 57 million passengers, in addition to the driver’s licenses of over 600,000 drivers working for the company.
Read More: 550 women sue Uber over allegations including kidnapping and sexual assault
Joseph Sullivan, the Chief Security Officer of Uber at the time had decided to conceal the all-important information. Reportedly, Sullivan was on the verge of offering $100,000 in Bitcoin to hackers to brush the news under the carpet. He had also got the hackers on board to sign a non-disclosure agreement.
However, when a ‘strong’ executive team took the centre stage, the breach the revealed and Sullivan was thrown to the law enforcement agencies. The former Security officer is now being charged with wire fraud and as part of the non-prosecution agreement, Uber Technologies Ltd. will help the prosecutors indict him.
Read more: The Uber Files: Leaked docs reveal how Uber won access to world leaders, deceived investigators
It is pertinent to note that Uber had to pay a fine of $148 million to all the 50 US states in September 2018, to settle the claims. However, given that Uber’s market value amounted to $76 billion in the same year, many experts called it a mockery of the system.
(With inputs from agencies)
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