Feeds

Ziff pays $125K to settle security breach

Lawyers get big bucks as punters gets peanuts

  • alert
  • submit to reddit

Seven Steps to Software Security

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. ®

Mobile application security vulnerability report

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
NEW, SINISTER web tracking tech fingerprints your computer by making it draw
Have you been on YouPorn lately, perhaps? White House website?
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Black Hat anti-Tor talk smashed by lawyers' wrecking ball
Unmasking hidden users is too hot for Carnegie-Mellon
Attackers raid SWISS BANKS with DNS and malware bombs
'Retefe' trojan uses clever spin on old attacks to grant total control of bank accounts
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.