Uber Pays $20,000 Fine for Not Reporting Data Breach

The New York Attorney General?EU?s office has imposed a $20,000 fine on ride-hailing app company Uber for failing to offer timely notice of a data breach. Beyond the dollars and cents, the alternative taxi service also agreed to make some serious security moves to show good faith.

Like credit card companies, Uber collects information from its customers -- enough to put their identities at risk from hackers. Specifically, Uber holds the names, e-mail addresses, phone numbers and payment card information of riders.

But it?EU?s a two-way street as drivers also give up information to be part of the program, including driver license numbers and vehicle registration numbers. Uber also stores real-time geographic location of riders and drivers to connect nearby drivers with customers.

The AG Is Satisfied

The backstory begins in November 2014. That?EU?s when New York Attorney General Eric Schneiderman launched an investigation into Uber. He set out to discover how the transportation service collected, maintained and disclosed the personal information of its customers after reports emerged that Uber was displaying rider information in an aerial view, internally known as God?EU?s view.

If that wasn?EU?t enough to cause concern over rider privacy, Uber waited nearly six months to report a data breach. Last February, Uber finally told officials that an "unauthorized third-party" had accessed driver names and driver license numbers beginning as far back as September 2014. More than a year later, Schneiderman appeared to be satisfied that the penalties and security pledges will remedy the issue.

?EU?This settlement protects the personal information of Uber riders from potential abuse by company executives and staff, including the real-time locations of riders in an Uber vehicle,?EU? said Schneiderman. ?EU?We are committed to protecting the privacy of consumers and customers of any product in New York State, as well as that of employees of any company...

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