EBay served class action lawsuit over hack

Summary:EBay is facing a class action lawsuit over a security breach earlier this year which left customer data compromised.

Screen Shot 2014-07-24 at 09.26.55

EBay is facing a class action lawsuit over a data breach which placed sensitive customer information at risk.

The online auction website was hacked in February , but waited until May to inform users. Cyberattackers compromised a database which held sensitive information including customer names, email addresses, physical addresses, phone numbers, dates of birth and their encrypted passwords.

At the time, eBay issued an advisory to customers asking that they change their passwords, and said it couldn't find any evidence of the cybercriminals accessing financial information. The firm also stated that there was no evidence PayPal had been affected. However, the data breach was not only damaging to the company's reputation, but a class action lawsuit claims that consumers are still feeling the consequences of lax security. 

Must See Gallery

Five of the best (and free) Android security apps

Worried about hackers and fraudsters gaining access to the data on your Android smartphone or tablet? You should be. But you can also reduce that risk by installing a security app on your device.

The lawsuit was filed Wednesday by Louisiana-based Collin Green on his own behalf as well as other customers impacted by the security breach, as reported by PC Advisor. The complaint states that eBay's inadequate security allowed customer identity data to be compromised, and the e-commerce site's failure to protect such data "has caused, and is continuing to cause, damage to its customers, the putative class members herein."

The complaint also states that eBay did not immediately notify users of the breach, and instead withheld the information based on profit. This, in turn, allegedly damaged the class action members further, as it prevented users from "immediately mitigating the damages from the theft."

Green has requested a trial by jury. If the combined claims of the class action members are accepted, this could cost eBay over $5 million in damages alone.

Topics: Security, Legal

About

Charlie Osborne, a medical anthropologist who studied at the University of Kent, UK, is a journalist, freelance photographer and former teacher. She has spent years travelling and working across Europe and the Middle East as a teacher, and has been involved in the running of businesses ranging from media and events to B2B sales. Charli... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.