On September 22, 2016, Yahoo! Inc. announced that “a copy of certain user account information was stolen from [their] network in late 2014 by what [they] believe is a state-sponsored actor.” (YAHOO) The company revealed that some of the stolen account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords, and encrypted or unencrypted security questions and answers. According to their ongoing investigation, stolen information did not include user’s payment card data and bank account information. By September 23, Ronald Schwartz sued Yahoo! Inc. on behalf of all Yahoo users in the United States whose account information was stolen. Plaintiff Ronald Schwartz is a New York resident, who filed …show more content…
Yahoo Inc., U.S. District Court, Northern District of California, No. 16-05456, I will refer to Topic E Torts: Negligence. A tort is a civil wrong that occurs when a party breaches a legal duty owed to another party and as a result the non-breaching party seeks remedy in the form of damages. Negligence is an unintentional tort that occurs when a party fails to provide the proper standard of care that a reasonable person would have provided in a similar situation. A higher degree of negligence is gross negligence. Gross negligence occurs when a party’s action falls substantially below “reasonable care” and such action can be considered as intentional rather than …show more content…
Without a doubt, Yahoo’s breach of duty led to numerous harms as the ones stated above, that must be paid out of the users’ own pockets. Plaintiff Schwartz could claim that as users are now at a high risk of identity theft, they must pay for special security computer programs or additional services to protect themselves. Moreover, Ponemon Institue stated in its annual report that “the costs to remediate a data breach is $221 per stolen record” (New York Times). This additional charge could be a serious harm to Yahoo as it tops the $4.8 billion deal with Verizon Communications Inc. Indubitably, plaintiff Ronald Schwartz has enough arguments to fulfil the requirements to file for a gross negligence
In 2006 AOL, inadvertently, made public personal information, of some 650,000 of its members. “The members filed suit with California federal district court, on behalf of themselves and a putative nationwide class of AOL members, alleging violations of federal electronic privacy law, 18 U.S.C. § 2702(a). A subclass of AOL members who are California residents also alleged various violations of California law, including the California Consumers Legal Remedies Act, California Civil Code § 1770.” (Doe 1 v AOL LLC, 2009)
There have been 23 claims recorded in the interest of Yahoo clients asserting they were hurt by the hack, as per the documenting.
It has come to my attention from the security analysts of VL Bank and victims that commercial customers of VL Bank have been involved in identity theft and fraud. Multiple user accounts were created without authorization claiming the identity of our customers. These fake accounts were used to make twenty-nine transfers of $10,000 each, equaling $290,000. The bank transfers were being sent to several U.S. bank accounts of unknown individuals. The U.S. banks involved in the transfers were Bank A in California, Bank B in New York, Bank C in Texas, and Bank D in Florida. After the funds were transferred to one of these banks, the funds were
Tort of negligence Is a major aspect of tort law and holds a large bearing in many civil cases. Negligence is simply a breach of duty or a
On September 8, 2015, it was discovered that a Patriot Financial Services (PFS) employee, whom provided customer support services to clients, had stolen personal financial data from approximately 50K of their customers. The data stolen by this employee was comprised of personal customer information including full names, home addresses, social security numbers, contact numbers, bank account numbers, driver 's license numbers, birth dates, email addresses, mother 's maiden names, pin’s and account balances. The suspect employee then proceeded to leak out this
Torts are classified as civil wrongs that are caused by a parties intentional or unintentional harm. Tort law is design to compensate the innocent party or force the guilty party to start or stop doing something.
When someone doesn’t live up to their responsibility of exercising care, and that failure leads to another person’s injury or death, the action or lack of action is referred to as negligence. As an example, say someone causes a fatal accident because they were speeding. In this case, the driver who was driving above the speed limit acted negligently, and therefore can be held liable in court for damages caused. The victim’s surviving family members can also file a wrongful death lawsuit alleging that the driver who caused the crash owes them damages associated with that untimely and unnecessary death.
After the controversial data breaching incident, AshleyMadison.com owners face an enormous $578 million Canadian class-action lawsuit based on reports. Meanwhile, another high-profile account holder of the infidelity site has been admittedly exposed.
Engadget writer, Mariella Moon, touched on this in a piece she wrote for the website at the beginning of Sept. 2017. U.S. District Judge Lucy Koh ruled that users who were victims of the data breach have the right to sue Yahoo, after the company claimed users had no grounds to sue on. Moon (2017) went on to write, “When the breach was first announced, Yahoo said customers' "names, email addresses, telephone numbers, dates of birth, hashed passwords (using MD5) and, in some cases, encrypted or unencrypted security questions and answers" were stolen.” After finding out what happened, many users paid for identity theft protection services. Something they may not have had to do if Yahoo was upfront about the breaches as they discovered the news
When an email account was originally established between Yahoo and Lane Corporal Ellsworth, a privacy and right to secure and not disclose information was initiated. The terms of service state in the company’s policies, that the account is non-transferable and any rights to your Yahoo ID or contents within your account terminate upon your death, upon receipt of a death certificate, your account may be terminated and all contents will be permanently deleted. When the parents of LCpl Ellsworth reached out to Yahoo requesting access to the account, Yahoo committed and obligated to withhold the information. While the companies’ condolences went to the family, it was honoring the terms of agreement. Yahoo has over 1 billion active monthly account users (Smith, 2016), all holding the same user agreement, regardless of circumstance; they should uphold the trust of the client – company
“Every year for the past 15 years, the Federal Trade Commission has ranked identity theft as the top consumer complaint” (Buck 1). These consumers want
All the consumers affected were also made vulnerable to subsequent identity theft given malicious attackers stole their personal data. Equifax was directly affected since its stock began to plunge immediately the news was made public. Additionally, the corporate governance of the company was tarnished given three Equifax executives sold shares worth around $2 million days after the breach discovery, and the “retiring” of the chief security information officers is questionable (Surane & Melin, 2017). Also, the company was exposed to litigations with some lobbyists and interest groups pushing regulators to hold Equifax accountable for the negligence and poor treatment of affected consumers. The proposed new data security laws will present a greater burden to other corporations. Two such laws are the Promoting Responsible Oversight of Transactions and Examinations of Credit Technology (PROTECT), and Freedom From Equifax Exploitation (FREE) will attract more government scrutiny and limit the type of personal data that companies can collect from customers (Alperan, Carter, & Sofio, 2017).
Perlroth, N. (2014, Jan 30). Yahoo Reports Attack on Mail Accounts. The New York Times. Retrieved on March 26, 2016 from www.nytimes.com
Torts of negligence are breaches of duty that results to injury to another person to whom the duty breached is owed. Like all other torts, the requirements for this are duty, breach of duty by the defendant, causation and injury(Stuhmcke and Corporation.E 2001). However, this form of tort differs from intentional tort as regards the manner the duty is breached. In torts of negligence, duties are breached by negligence and not by intent. Negligence is conduct that falls below the standard of care established by law for the protection of others against unreasonable risk of harm(Stuhmcke and Corporation.E 2001). The standard measure of negligence is the universal reasonable person standard. The assumption in this case is that a reasonable
Presented are four separate cases that have been argued and settled in a court of law. Each of these cases represent a different kind of tort, a tort is a civil wrong or wrongful act, which can be either intentional or accidental, from which injury occurs to another (Hill & Hill n.d.). The torts are as listed, intentional, criminal, negligence, and liability as presented in the four researched cases.