Uber Hack Prompts Calls for Probes, Punishment From Congress

Updated on
  • Company concealed hack of data on 57 million users and drivers
  • FTC says it is ‘closely evaluating’ these ‘serious issues’

Uber Technologies Inc.’s failure to disclose a major hack of customer and driver information and an attempt to cover it up is being investigated by state and federal officials.

Representative Frank Pallone of New Jersey, the top Democrat on the House Energy and Commerce Committee, said the San Francisco-based company should testify in front of the panel, which has jurisdiction over cybercrimes. He also called on the Federal Trade Commission to investigate. A spokesman for the FTC said the agency was “closely evaluating the serious issues raised.”

“The security breach shows a sloppy approach by the company to protecting consumer data, and demonstrates a severe breach of trust with the public,” Pallone said in a statement.

Hackers stole the personal information of 57 million Uber drivers and customers in October 2016. At the time, the company paid the hackers to delete the information and keep quiet. Uber now says it had a legal obligation to report the hack. It’s the latest scandal Chief Executive Officer Dara Khosrowshahi inherited when he joined the company in September.

Senator Richard Blumenthal also called out the company. “This corporate malfeasance should be swiftly and strongly punished,” the Democrat from Connecticut said in a statement. The attorneys general of Massachusetts, Connecticut and New York said they would investigate.

Uber also faces at least three probes in Europe regarding the incident.

“None of this should have happened, and I will not make excuses for it,” Khosrowshahi said in an emailed statement. “We are changing the way we do business.”

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