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Reports US

US stock market daily report (May 22, 2014, Thursday)

May 23, 2014, Friday, 05:49 GMT | 00:49 EST | 10:19 IST | 12:49 SGT
Contributed by Millennium Traders

EBay Inc. (EBAY-Nasdaq) is facing investigations of the companies e-commerce security practices by the states of Connecticut, Florida and Illinois over the massive cyber attack that now has their entire user database is reportedly up for sale, on the digital black market. The quick investigative action launched by these states means that authorities are holding companies accountable for securing consumer data following other high-profile customer breaches with other firms.

EBay spokeswoman Amanda Miller said the company is working with governments around the globe in the wake of the attack. Miller said, "We have relationships with and proactively contacted a number of state, federal and international regulators and law enforcement agencies. We are fully cooperating with them on all aspects of this incident." The data breach at eBay began in late February, this breach was detected two weeks ago however, eBay only informed the public of the breach on May 21; a long time for hackers to have free access to customers accounts with eBay. The entire database from eBay consists of personal information including customer names, telephone numbers, birthdates, physical addresses and encrypted passwords of over 230 million active users.

The investigations were sparked after numerous eBay customers complained in eBay Community forums and on social media that they received news about the breach from media sources first and not directly from the company. While eBay promised to contact customers by email, many have yet to receive correspondence from the company, about the cyber attack. As of late Thursday afternoon, eBay still had not posted any information about the cyber attack, on its home page. This failed action by eBay implies a serious failure to keep their 'valued customers' informed of a security breach of their personal information, entrusted with eBay.

Jaclyn Falkowski, spokeswoman for Connecticut Attorney General George Jepsen, said the investigation by the three states will focus on eBay's measures for securing personal data, the circumstances that led to the breach, how many users were affected and the eBay's response to the breach.

The San Francisco field office of the Federal Bureau of Investigation and a cyber forensics firm are assisting eBay in its probe.

New York Attorney General Eric Schneiderman requested eBay provide free credit monitoring for everyone affected.

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