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Senator Calls for SEC Probe Into Colossal Yahoo Hack

Image by Sebastian Bergmann.

A U.S. senator is calling on the Securities and Exchange Commission (SEC) to investigate the massive breach of Yahoo’s systems resulting in the data of more than 500 million people being compromised.

sen-mark-warner
Sen. Mark Warner

Yahoo announced last week that its system was hacked back in 2014 with the attackers making off with users’ names, e-mail addresses, telephone numbers, dates of birth, hashed passwords and security questions and answers.

Although Yahoo announced the hack just last week, it is thought the company may have known about the hack as early as July of this year. And, as Sen. Mark Warner has pointed out, public companies are required under federal law to disclose “material events” to investors within four business days.

“Yahoo’s September filing asserting lack of knowledge of security incidents involving its IT systems creates serious concerns about truthfulness in representations to the public.  The public ought to know what senior executives at Yahoo knew of the breach, and when they knew it,” Warner said in a letter to the SEC.

“I encourage you to investigate whether Yahoo and its senior executives fulfilled their obligations to keep investors and the public informed, and whether the company made complete and accurate representations about the security of its IT systems.”

Yahoo has said it is still investigating the breach along with law enforcement officials. Yahoo has also said it is in the process of notifying potentially affected users and is encouraging those who have been affected to change their passwords and adopt alternate means of account verification.

Warner, who is a former technology executive and member of the Senate Intelligence and Banking Committees, is also advocating for more transparency for consumers.

“While we have seen more and more data breaches in the private sector in recent years, many of them affecting millions of consumers, the seriousness of  this breach at Yahoo is huge,” he said in a statement last week. “While its scale puts it among the largest on record, I am perhaps most troubled by news that this breach occurred in 2014, and yet the public is only learning details of it today.  Action from Congress to create a uniform data breach notification standard so that consumers are notified in a much more timely manner is long overdue, and I urge my colleagues to work together to pass this essential legislation.”

News of the breach comes just a few months after Verizon agreed to acquire Yahoo’s Internet business for $4.83 billion in cash. It is not known if news of the breach will impact the deal, but there are rumors that investors may no longer be in favor.

About the author

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Jennifer Cowan

Jennifer Cowan is the Managing Editor for SiteProNews.

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  • Yahoo is having real trouble in keeping up with everything. From business to users, and users to security of the information. Everything is kind of compromised for the company.