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LivingSocial Gets Hacked, 50 Million Customers' Info Accessed

Source: WSJ

Posted on 29 Apr 2013 by Neilson

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LivingSocialLivingSocial, the daily deals site owned in part by Amazon, has suffered a massive cyber attack on its computer systems, which an email from CEO Tim O'Shaughnessy sent to employees said resulted in "unauthorized access to some customer data from our servers."

The hack includes customer names, emails, birthdates and encrypted passwords.

The breach has impacted 50 million customers of the Washington, D.C.-based company, who will now be required to reset their passwords. All of LivingSocial's countries across the world appear to have been affected, except in Thailand, Korea, Indonesia and the Philippines, as LivingSocial units Ticketmonster and Ensogo there were on separate systems.

One positive note in a not-so-positive situation: The email sent to employees and customers noted that neither customer credit card nor merchant financial information was accessed in the cyber attack.

This is the latest big data breach in the consumer Internet space, which has seen troublesome incursions into some high-profile companies recently, including Zappos, LinkedIn and Evernote.

When asked for comment on the email, a LivingSocial PR spokesman confirmed the attack and that 50 million customers were impacted.

The attack comes at a tough time for the company, since it has been trying to turn itself around after a downturn across the daily deals landspace. LivingSocial got a large cash infusion recently from investors to help staunch its losses. Amazon owns 29 percent of the company.


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