Uber has announced that in 2016 hackers breached its systems and accessed the personal information of over 57 million customers.
Uber disclosed this information on Tuesday 11/21. It also disclosed that the hackers were paid $100,000 to destroy the data that they had stolen. Uber is already in trouble for a host of missteps they have made since they came on the scene. From the Greyball software that they used to evade regulators, to a court battle over allegedly stealing secrets from Google’s self-driving car division, to a slew of complaints regarding sexual harassment and toxic company culture the road has not been smooth.
In the latest scandal, the CEO Dara Khosrowshahi, said two hackers stole personal data, including phone numbers, email addresses, and names, of 57 million Uber users. The hackers also stole 600,000 driver’s license numbers of drivers for the company. Instead of alerting the public and authorities the former CEO Travis Kalanick authorized a $100,000 payment to the hackers. Uber has said that they have received assurances that the data was destroyed.
Uber is headquartered in California and like 48 other states in the US, they have strict laws that mandate companies to notify authorities the moment they are aware of a breach.
Uber is expected to go public in 2019 and how they handle these scandals will determine how successful the IPO will be. The government and public will be watching closely.