Yahoo, now part of Altaba, has been fined US$35 million for failing to disclose a 2014 security breach.
It was one of the world’s largest data breaches in involving the theft of personal data of hundreds of millions of user accounts.
According to the Securities and Exchange Commission (SEC), within days of the December 2014 intrusion, Yahoo’s information security team learned that Russian hackers had stolen what the security team referred to internally as the company’s “crown jewels”: usernames, email addresses, phone numbers, birthdates, encrypted passwords, and security questions and answers for hundreds of millions of user accounts.
“Although information relating to the breach was reported to members of Yahoo’s senior management and legal department, Yahoo failed to properly investigate the circumstances of the breach and to adequately consider whether the breach needed to be disclosed to investors,” noted the SEC press release.
The breach was only revealed when Verizon was in the process of buying Yahoo two years later.