In Expanded Uber Settlement, FTC Hammers Home Security Message
The regulator warned tech companies to make sure their software development environments are secure. Uber's 2016 breach came after an engineer stored an access key to a cloud database in code hosted on GitHub.
April 12, 2018 at 06:18 PM
3 minute read
The Federal Trade Commission on Thursday announced an expanded settlement with Uber to address the data breach disclosed by the ride-hailing giant in November, and took the opportunity to urge tech companies to lock down their software development environments.
The new FTC consent order comes after Uber agreed in August to submit to regular audits of its privacy protocols to resolve FTC allegations the company failed to properly safeguard sensitive data. Those allegations had to do with a 2014 data breach that resulted from unsecured data stored on an Amazon Web Services S3 cloud server.
“After misleading consumers about its privacy and security practices, Uber compounded its misconduct by failing to inform the commission that it suffered another data breach in 2016 while the commission was investigating the company's strikingly similar 2014 breach,” acting FTC Chairman Maureen K. Ohlhausen said in a statement.
“The strengthened provisions of the expanded settlement are designed to ensure that Uber does not engage in similar misconduct in the future,” she added. According to the FTC, Uber could be subject to civil penalties for failing to report future breaches under the settlement. Uber is not currently directed to pay any monetary penalty under either consent order.
“My first week at Uber was the week we disclosed the 2016 breach. When Dara Khosrowshahi joined the company, he committed on behalf of every Uber employee that we would learn from our mistakes, change the way we did business and put integrity at the core of every decision we made,” Uber chief legal officer Tony West said in a statement. “Since then we have moved quickly to do just that by taking responsibility for what happened.”
The FTC's chief technologist, Neil Chilson, also posted a blog on Thursday titled “A Lesson from Uber: Secure Your Non-Production Software Environments,” issuing a broader warning to tech companies about how they handle data when collaborating on code.
According to the FTC's complaint, intruders gained access to an Amazon S3 Datastore used by Uber after obtaining an access key an Uber software engineer posted to GitHub, a platform for software collaboration. The key was stored in plain text in a private code repository, but the attackers were able to access it by breaking into GitHub accounts used by Uber engineers. Uber paid the hackers $100,000 to keep the breach quiet.
“Companies often focus their privacy and data security efforts on the up-and-running production environments actively used by their consumers,” Chilson wrote. “But an insecure software development environment can also create real problems. Insecure non-production environments leave a company open to corporate espionage, sabotage by competitors, and, yes, theft of private consumer data.”
Chilson urged companies to “consider privacy and data security in all phases of the software lifecycle.” Specifically, he advised companies to be cautious when submitting code to public or open-source repositories.
“Review it for security vulnerabilities, especially hardcoded keys and logins. Not only does this protect you, your employer, and your customers, it also improves the quality of the code for the community,” he added.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllIn Lawsuit, Ex-Google Employee Says Company’s Layoffs Targeted Parents and Others on Leave
6 minute readMorrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
Trending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250