Feeds

Ziff pays $125K to settle security breach

Lawyers get big bucks as punters gets peanuts

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

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. ®

New hybrid storage solutions

More from The Register

next story
Google recommends pronounceable passwords
Super Chrome goes into battle with Mr Mxyzptlk
Infosec geniuses hack a Canon PRINTER and install DOOM
Internet of Stuff securo-cockups strike yet again
Reddit wipes clean leaked celeb nudie pics, tells users to zip it
Now we've had all THAT TRAFFIC, we 'deplore' this theft
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
TorrentLocker unpicked: Crypto coding shocker defeats extortionists
Lousy XOR opens door into which victims can shove a foot
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.