Ashley Madison offers to pay $11.2 million to hacking victims

Ivan Schwartz
July 17, 2017

The parent company of adult dating site Ashley Madison has offered to pay an $11.2 million (£8.5m) settlement to users affected by the mass data breach which exposed 36 million accounts.

Known for its slogan "Life is short".

Last December, Ruby agreed to pay $1.66 million to settle a probe by the U.S. Federal Trade Commission and several states into lax data security and deceptive practices, also without admitting liability.

In 2015, TrustedSec Chief Executive Dave Kennedy said the information dump included full names, passwords, street addresses, credit card information and "an extensive amount of internal data".

The settlement will see "contribute a total of $11.2 million Dollars to a settlement fund, which will provide, among other things, payments to settlement class members who submit valid claims for alleged losses resulting from the data breach and alleged misrepresentations as described further in the proposed settlement agreement".

According to Friday's settlement, users with valid claims can recoup up to $3,500 depending on how well they can document their losses attributable to the breach.

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It may also be the case that previous users entitled to compensation simply want to lay the issue to rest and will not claim.

Ashley Madison was a dating website for people who already had a partner but were looking to have an affair.

The FTC previously described engager profiles as fakes "created by [Ashley Madison] staff who communicate with consumers in the same way that consumers would communicate with each other - as a way to engage or attract additional consumers to AshleyMadison.com".

The group of hackers, called Impact Team, said they stole the information of 37 million members of Ashley Madison.

The company says that since July 2015, it has implemented "numerous remedial measures" to boost the security of customers' data.

Other reports by GizPress

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