Dowling says mistakes and breaches are bound to happen in the technology field, and if they do the company should be honest about it. It may have been because the information was easy for hackers to access on account of Uber's engineers being lax with security online (according to some reports), but regardless, the secrecy around the payout is pretty bad. "Good", tweeted Dan Kaminsky, chief scientist at security firm White Ops. Companies frequently accidentally keep credentials in source code that is uploaded to GitHub, he said. The laws generally apply if a victim of a hack lives in that state.
"The problem with viewing this as some sort of simple risk management decision is that it underestimates the basis for an attacker's business model", Matwyshyn told CNN Tech.
And even the SEC has faced security issues of its own. Yeah, those hackers could totally have kept the data.
The cover up involved payments of $100,000 (£75,000) to the hackers, according to Bloomberg, who broke the news. Is a ransomware attack technically a data breach? Hackers threatened to release TV shows unless the companies paid them.
Matwyshyn says it's possible Uber will face consequences from both state and federal agencies.
It is the latest disclosure of a major breach involving a prominent company.
State Attorneys General from NY and MA have opened investigations into the data breach.
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Uber admitted that it failed to take the correct actions.
Although the Uber breach likely has global implications, its potential effect on Australian users and drivers led Pilgrim to quickly make enquiries with Uber, his office said in a statement.
As we can see in this chart from Statista, Uber's incident was unfortunate, but relatively low impact compared to others that have occurred over the past few years.
The new management of San Francisco-based Uber said on Tuesday that it had only learned recently that personal information from about Uber 57 million accounts had been stolen in 2016.
Khosrowshahi made no mention of whether Uber riders whose information was hacked are being contacted.
However, more than a fifth (21 percent) of respondents felt that such incidents probably happen all the time and so Uber's situation didn't bother them and over a quarter (27 percent) felt it was annoying but wouldn't stop them from using the service.
Other countries have similar rules regarding breaches. Britain's Deputy Information Commissioner James Dipple-Johnstone said that "if United Kingdom citizens were affected then we should have been notified so that we could assess and verify the impact on people whose data was exposed".