View Full Version : Cheating spouse website Ashley Madison reaches $1.7M settlement over cyber-hack

The Bobster
12-14-2016, 05:28 PM

Ashley Madison reaches $1.7M settlement over cyber-hack
By Jamie Schram
December 14, 2016 | 12:31pm | Updated


Cheating spouse website Ashley Madison has reached a $17.5 million settlement with 13 states that will see New York getting a mere $81,000, Attorney General Eric Schneiderman announced Wednesday.

Under the agreement, Ruby Corp. will immediately pay out $1,657,000 to the states with New York receving a total of $81,330.94 after the protracted, multi-jurisdictional probe into the massive 2015 data breach of AshleyMadison.com.

The breach led to millions of the site’s members being exposed online as having extramarital affairs. A whopping 652,627 New Yorkers were Ashley Madison users at the time of the hack. :confused:

After the initial payments, Ruby Corp. will not be forced to come up with the remainder of the money because of its lack of funds.

“This settlement should send a clear message to all companies doing business online that reckless disregard for data security will not be tolerated,” Schneiderman said. “All companies have a responsibility to protect the privacy and personal information of consumers, and my office will continue to work with other state and federal authorities to protect consumers from online threats.”

The nationwide probe uncovered “lax data security practices,” the use of “deceptive advertising” and the failure to properly train managers and other staff, said a source close to Schneiderman.

The company also posted fake messages on the site, stating it had won a “Trusted Security Award”and that it was a “100% Discreet Service” with a label that boasted “Certified Zero Risk TM.” But no such certification entity exists.

Ashley Madison also resorted to creating fake profiles of attractive women to encourage male users to reach out to other female members, including those who with bogus profiles.

Often times, the site used pieces of profiles belonging to former female clients who hadn’t used the service for over a year, cropping photos that hid their faces but not their voluptuous bodies.

Ashley Madison also failed to delete profiles of users who had requested removal of their personal information.

In fact, the website offered users a “Full Delete” option to “remove all traces of your usage for only $19.00,” Schneiderman said.

For up to 12 months, the site kept profile information from users, who had purchased the “Full Delete” option to address consumer inquires on disputed credit card transactions.

As a result, many of the “Full Delete” purchasers had their photographs, chat communications and nicknames released during July 2015 data breach.

“Today is a pivotal day for our members and for Ashley Madison,” newly appointed Ruby Corp. CEO Rob Segal said in a statement. “Today’s settlement closes an important chapter on the company’s past and reinforces our commitment to operating with integrity and to building a new future for our members, our team and our company.”

Other states that wil receive money under the settlment include Alaska, Arkansas, Hawaii, Louisiana, Maryland, Mississippi, North Dakota and Nebraska.