BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Uber is facing government scrutiny after its disclosure that the ride-hailing company concealed a massive security breach, where hackers accessed the personal information of 57 million riders and drivers last year. As per reports, Uber paid $100,000 to hackers to hide the breach from public.
In the latest developments, the Federal Trade Commission or FTC is said to be evaluating the data breach. A spokesperson for the federal agency reportedly told Reuters, 'We are aware of press reports describing a breach in late 2016 at Uber and Uber officials' actions after that breach. We are closely evaluating the serious issues raised.'
Meanwhile, two separate lawsuits have been filed in different federal courts across California against Uber alleging negligence, reports said.
On Tuesday, Uber CEO Dara Khosrowshahi disclosed the data breach one year after the incident, saying that it aims to repair past mistakes.
According to the firm, two outsiders accessed user data stored on a third-party cloud-based service in late 2016 that included some personal information of 57 million Uber users around the world, including around 600,000 drivers in the United States.
The company said it had taken necessary action immediately to secure the data and shut down further unauthorized access. 'We subsequently identified the individuals and obtained assurances that the downloaded data had been destroyed,' the company noted.
Individual riders were asked not to take any action stating that the company has seen no evidence of fraud or misuse tied to the incident.
Uber said it is monitoring the affected accounts and have flagged them for additional fraud protection. Uber also urged all users to regularly monitor their credit and accounts, including their Uber account, for any issues.
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