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SEC Issues $35 Million Fine Over Yahoo Failing To Disclose Data Breach (theverge.com)
Altaba, the company formerly known as Yahoo, will have to pay a $35 million fine for failing to disclose a 2014 data breach in which hackers stole info on over 500 million accounts. "The U.S. Securities and Exchange Commission announced today that Altaba, which contains Yahoo's remains, agreed to pay the fine to settle charges that it misled investors by not informing them of the hack until September 2016, despite known of it as early as December 2014," reports The Verge. From the report: The SEC goes on to admonish Yahoo for its failure to disclose the breach to investors, saying that the agency wouldn't "second-guess good faith exercises of judgment" but that Yahoo's decisions were "so lacking" that a fine was necessary. Yahoo isn't being fined for having poor security practices, not informing users, or really anything related to the hack happening. The SEC is just mad that investors weren't told about it, because -- as Yahoo even noted in filings to investors -- data breaches can have financial impacts and legal implications. With a breach this large, the SEC believes that was obviously a real risk. "Public companies should have controls and procedures in place to properly evaluate cyber incidents and disclose material information to investors," Jina Choi, director of the SEC's San Francisco Regional Office, said in a statement. The SEC released guidance to public companies on what to disclose about data breaches earlier this year, which could help to avoid similar situations in the future.
Does Yahoo have 35 million laying around? I Yahoo even worth this much to verizon?
I read at +2. If your post doesn't reach that level I will not see or respond to it.
Privacy is cheap according to the SEC.
will be paying the fine? Yeah, didn't think so.
That's great and all, but how does that help the people who've actually been impacted? Is the SEC setting up a fund or something to help those who've actually lost something (including investors which is supposed to be why they're there)? Exactly how does the government agency there by the people and for the people actually benefit the people? I think we ought to start asking this of all government agencies. I have to justify my existence and prove my worth year after year. How is it we shouldn't expect the same from our representatives?
$0.07 per stolen account. How are companies supposed to learn from their actions if they only receive a slap on the wrist?
35 million to those assholes is NOTHING. And the stockholders pay anyway.
Yeah, that's public companies for yah. Management does what they want, the peasants who own the stock (All those 401k;ers and IRA'ers) pay the bills.
Suck it peasants!!
Send the fucking management to jail like civilized countries do!
Maybe they should have hired the Equifax lawyers.
I would have hoped that not securing your data and allowing customer data to get into the hands of who knows who would be worth at least $1 per account affected. No need to invest in proper IT security if you have the cash on hand.
Do the cheated public ever get to see any of these so called 'fines' at all or does it all go to Uncle Sam who just encourages more of such pathetic capitalistic companies that dont care about privacy ?? Europe rocks for privacy.
Before this fine, Yahoo sent out updated ToS agreement about arbitation, etc. Coincidence?
The former CEO is going to be paying this fine out of their personal assets I assume? Nah, accountability is nothing these days. Punish the stockholders who had nothing to do with it.
Weren'tt there multiple breaches? This fine is specifically for the 2014 one.
3B in revenue. 35M fine. Like a pimple that needs to be popped.
Oath, Altaba. These are very good names.
I will name my first born Altaba.
Or my goldfish.
Truly shocking! Have they not considered the impact this could have on investment bankers' bonuses--in this year alone?
Their Oracle told them years ago.
(Yet Another Hierarchical Officious Oracle!)