Feeds

Ziff pays $125K to settle security breach

Lawyers get big bucks as punters gets peanuts

  • alert
  • submit to reddit

Protecting against web application threats using SSL

Publisher Ziff-Davis has agreed to pay $125,000 to settle legal actions brought after a security breach that exposed customer credit card details on the Web.

The States of New York, Vermont and California will receive $100,000 from Ziff to cover their costs in investigating a breach that exposed some "12,000 subscription orders last year", according to ZDNet. Ziff will also pay 50 users, whose credit card details were inadvertently published on the Web, $500 in compensation.

As a result of coding errors during a promotion last November, personal details of subscribers to Electronic Gaming Monthly magazine were exposed on Ziff's Web site. Some of these people later became the victims of identity theft.

As part of the settlement, Ziff has agreed to bolster its security measures to guard against a repeat of the damaging (both to customers wallets and its reputation) security breach.

The case is interesting because statements by New York Attorney's Office suggest an increased willingness by the US authorities to hold companies liable for unintentionally violating customers' privacy. Maybe this will be a factor in encouraging firms to take online security more seriously in future (we hope, anyway).

However we can't help reflecting that with only 50 users out of 12,000 subscribers receiving any compensation for the worry and inconvenience caused by Ziff's bungle, the main winners in this case are the lawyers. As usual. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Spies would need SUPER POWERS to tap undersea cables
Why mess with armoured 10kV cables when land-based, and legal, snoop tools are easier?
Early result from Scots indyref vote? NAW, Jimmy - it's a SCAM
Anyone claiming to know before tomorrow is telling porkies
TOR users become FBI's No.1 hacking target after legal power grab
Be afeared, me hearties, these scoundrels be spying our signals
Jihadi terrorists DIDN'T encrypt their comms 'cos of Snowden leaks
Intel bods' analysis concludes 'no significant change' after whistle was blown
Home Depot: 56 million bank cards pwned by malware in our tills
That's about 50 per cent bigger than the Target tills mega-hack
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
China hacked US Army transport orgs TWENTY TIMES in ONE YEAR
FBI et al knew of nine hacks - but didn't tell TRANSCOM
Microsoft to patch ASP.NET mess even if you don't
We know what's good for you, because we made the mess says Redmond
NORKS ban Wi-Fi and satellite internet at embassies
Crackdown on tardy diplomatic sysadmins providing accidental unfiltered internet access
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.