Uber Faces Major Fallout from Massive Hack, Alleged Cover-Up

Uber's admission that it took more than a year to disclose the theft of personal data from 57 million customers and drivers has now drawn two lawsuits and a federal probe.

Compounding the ride-hailing titan's woes are news reports that it paid the hackers $100,000 to destroy the pilfered data, and that its new CEO knew about the breach for more than two months before revealing it to customers and drivers.

The hack and its fallout are just the latest problems to strike a firm that is already a target for harsh criticism about its management -- from claims it fostered a reckless, misogynist company culture that led to sexual harassment and bullying, to revelations about use of secret technology for evading authorities' oversight, to a trade-secrets lawsuit by Google self-driving spinoff Waymo, and an $8.9 million fine levied Nov. 20 by Colorado over drivers with serious criminal and driving-infraction records.

The beleaguered San Francisco company's latest personal-data trouble started in October 2016, when hackers broke into its systems and downloaded names, email addresses and cell phone numbers of 57 million Uber customers, along with names and driver's license numbers of some 600,000 U.S. Uber drivers, according to statements from the company.

Such information is commonly used for identity theft, which can result in criminals obtaining credit cards and loans in victims' names, or looting their bank accounts.

It wasn't until Tuesday that Uber, in a statement from CEO Dara Khosrowshahi, revealed the breach to customers, drivers and the public. And according to a new report, Khosrowshahi had learned of the hack two weeks after he took the reins of the company Sept. 5, according to the Wall Street Journal, which cited unnamed people said to be familiar with the matter.

In his Tuesday statement disclosing the 2016 hack, Khosrowshahi said he had "recently" learned of...

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