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Extreme Hacking | Sadik Shaikh | Cyber Suraksha Abhiyan

Credits: FT NEWS

About 3bn accounts were affected in the Yahoo data breach in 2013, three times bigger than the company had previously estimated, making it one of the largest thefts of personal information ever seen in a cyber attack.

The internet company, acquired by Verizon earlier this year and combined with AOL into a new company called Oath, announced on Tuesday that it had obtained “new intelligence” and now believes that all Yahoo user accounts were affected by the 2013 theft. Yahoo is now sending email notifications to the 2bn extra accounts believed to have been affected.

When Yahoo revealed the breach last December, it required password changes and it had invalidated unencrypted security questions and answers across all accounts, not just those it thought had been compromised at the time.

Chandra McMahon, chief information security officer of Verizon, said the telecoms company’s investment in Yahoo was allowing the team to take “significant steps to enhance their security, as well as benefit from Verizon’s experience and resources”.

“Verizon is committed to the highest standards of accountability and transparency, and we proactively work to ensure the safety and security of our users and networks in an evolving landscape of online threats,” she said. The new information was discovered during the integration with Verizon, with the assistance of outside forensic experts.

Verizon renegotiated the deal with Yahoo after news of two major cyber security breaches broke after the two companies had agreed takeover terms, cutting $350m off its original offer price to pay $4.5bn. The 2013 breach was announced in December 2016, three months after Yahoo had announced a 2014 breach.

The companies also agreed that Yahoo and Verizon would equally share responsibility for any cash liabilities linked to the data breaches, and that Yahoo would be wholly responsible for liabilities from shareholder lawsuits and SEC investigations.

A US judge ruled in August that Yahoo must face litigation from users whose personal information was compromised, allowing a class-action lawsuit to go forward because all plaintiffs had an “alleged risk of future identity theft” as well as the “loss of value of their personal identification information” and the money some had spent to protect themselves from identity theft. Yahoo admitted earlier this year that senior executives and relevant legal staff had known in 2014 about a hack by a state-sponsored hacker.

An investigation by an independent committee found that they did not “properly comprehend or investigate” the breach to the full extent of what was known by Yahoo’s cyber security team.

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