Ashley Madison sanctioned over data breach

Ashley Madison's Korean website is shown on a computer screen. Picture: Lee Jin-man

Ashley Madison's Korean website is shown on a computer screen. Picture: Lee Jin-man

Published Dec 15, 2016

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New York - Adultery website AshleyMadison.com’s owner

agreed to pay a steeply discounted $1.65 million fine to resolve state and

federal probes into a 2015 hack that exposed personal data of 37 million users

of the site whose slogan was “Life is Short. Have an Affair.”

The company, which changed its name to Ruby from Avid

Life Media after the breach, agreed to a $17.5 million penalty to resolve a

multistate investigation, New York Attorney General Eric Schneiderman said in a

statement. The fine was reduced by about 90 percent due to an "inability

to pay," and the rest of the amount was suspended.

“Reckless disregard for data security will not be

tolerated,” Schneiderman, who joined with 12 other US states and the US

Federal Trade Commission to announce the settlement.

Read also:  Hack exposes 6.4m kids' data

Hackers dumped almost 10 gigabytes of data on the

Internet, providing information on previously anonymous users, including e-mail

addresses, names and details of sexual preferences and fantasies, authorities

said. As many as 652 627 New York residents were members of Ashley Madison at

the time of the security breach.

The multi-state probe uncovered lax data-security

practices at the company, including a failure to maintain its

information-security policies or to use so-called multi-factor authentication

to secure remote access, according to the statement.

The hack led Noel Biderman, the Toronto-based company’s

former chief executive officer, to step down, and triggered a probe by the

Federal Bureau of Investigation, the US Department of Homeland Security and the

Royal Canadian Mounted Police.

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