Uber Data Breach Costs Ride Sharing App $148 Million

Uber is finding itself in rough waters this week as they dish over a whopping amount due to a 2016 mishap. If you hadn’t heard, Uber was accused of intentionally concealing a data breach back in 2016, and they are allegedly paying the consequences now.

Uber, the popular rideshare app, is forking over a massive $148 million two years after the breach was kept private. The total payment will be spread out equally among the 50 U.S states that were affected by the breach, making it the largest ever multi-state breach settlement to date, a feat we're sure Uber wasn’t planning on achieving.

The investigation first started back in 2016 when the company was first accused of concealing the data breach. The breach violated state-level notification laws by intentionally withholding that hackers ultimately stole users personal information. Although that may sound like a common thing, with the Facebook hack affecting millions, the Uber breach set the company at a new low after having an estimated 57 million users personal information hacked and used.



Uber holds information from your credit card information, and home address, information that you definitely wouldn’t want the wrong person to get a hold of. As if that wasn’t bad enough, the breach itself was not disclosed until late 2017, over a year after the incident occurred. Yikes! Uber eventually revealed that it paid the hackers $100,000 to destroy any and all data they collected from the 57 million users.

In April, Uber settled a case with the Federal Trade Commission, who were the ones investigating Uber at the time. According to CNN, Uber has also agreed to develop and implement a new corporate integrity program for employees to report unethical behavior. In addition to the settlement, Uber agreed to adopt model data breach notification and data security practices to eliminate the event from happening again.

Uber is currently cleaning up its practices, and has hired a chief privacy officer, Ruby Zefo; to keep a close eye on all security practices involved the company. This wasn’t a good look for Uber, but we’re glad to see there taking proper measures to ensure this doesn’t happen again!


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