Yahoo to pay $50 million for data breaches

In 2013, Yahoo suffered a huge data breach compromising about all the three billion accounts and in the next year, 2014, the company suffered another data breach, this time a smaller one that compromised the personal information of about 50 million users.

Personal information includes stuff like names, birthdays, email addresses, encrypted passwords, and in some cases, security questions and their answers.

Yahoo Logo
[Source: Yahoo(Verizon)]
Yahoo revealed about these two data breaches in 2016 and now after about two years, a settlement is reached for a 2-year-old lawsuit seeking to hold Yahoo accountable for digital burglaries that occurred in 2013 and 2014 but weren’t disclosed until 2016.

The company has agreed on a deal to pay $50 million in damages to 200 million people in the US and Israel who had their personal information compromised. Along with that, the company will also have to provide users with credit monitoring services for two years.

The settlement is yet to be approved by California Federal Court before payments can be granted to the affected users.

The $50 million funds will compensate at a rate of $25 per hour for time spent dealing with issues triggered by the security breach. Users who can document their losses can ask for up to 15 hours of lost time or $375 or simply $125 if they can’t document their loss. Yahoo Premium account holders will be eligible for a 25 percent refund.

Last year Verizon bought Yahoo’s internet services so, half of the settlement will be paid by Verizon while the other half by Altaba Inc., the remaining part of the company after the deal with Verizon.

[Source: AP News]

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