Security Breach Costs Yahoo $50 Million

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CBJ — Yahoo has agreed to pay $50 million in damages and provide two years of free credit-monitoring services to 200 million people whose email addresses and other personal information were stolen as part of the biggest security breach in history.

The digital thefts occurred in 2013 and 2014, but were not disclosed to the public until 2016.

Yahoo revealed the problem after it had already negotiated a $4.8 billion deal to sell its digital services to Verizon Communications. It then had to discount that price by $350 million to reflect its tarnished brand.

Verizon will now pay for one half of the settlement cost, with the other half paid by Altaba Inc., a company that was set up to hold Yahoo’s investments in Asian companies and other assets after the sale.

It’s estimated about 3 billion Yahoo accounts were hit by hackers that included some linked to Russia by the FBI.

@CanBizJournal

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