Security & Fraud

Ashley Madison Data Breach Victims To Receive $11.2 Million

Two years after its tumultuous and massive data breach exposing millions of its users’ data to the public, the controversial Ashley Madison site — which sets up married or people in committed relationships with others looking for sexual encounters — has finally reached a settlement.

Exposing private details to the public is something that has likely significantly impacted the overall Ashley Madison brand. Given the company’s specialization in discretion — keeping its users’ encounters on the down low — the data breach was a big blow to its reputation.

While the company is still denying any wrongdoing in the cybersecurity issue, Ashley Madison’s parent company, Ruby Corporation, has agreed to a $11.2 million settlement with the 37 million site users. Reuters reported the data breach cost Ruby Corporation over a quarter of its revenue and a $1.6 million fee to the Federal Trade Commission and 13 states.

Anyone impacted by the Ashley Madison data breach is entitled to claim up to $3,500 depending on the documentation they can provide connected to the event. While this may seem like a generous amount, the users impacted — those who may not have wanted their neighbors or spouses to know about their interactions through Ashley Madison — may not feel it is sufficient.

——————————–

LATEST INSIGHTS:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the latest PYMNTS report on healthcare digital identity. 

Click to comment

TRENDING RIGHT NOW

To Top