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Yahoo to pay $50 mn in damages as settlement over 2013 data breach

Yahoo suffered global reputational damage when a security breach in 2013 affected at least 3 bn accounts and another breach, a year later, affected 500 mn accounts

Photo: Reuters
Photo: Reuters

Yahoo will have to pay millions in damages as part of a settlement in the 2013 and 2014 mega data breach case.

As per the settlement filed earlier this week, Yahoo has been slapped a fine of $50 million. In addition to that, the company will also have to provide a minimum of two years of credit monitoring services for the 200 million people impacted by the breach, Cnet reported.

Yahoo suffered global reputational damage when a security breach in 2013 affected three billion accounts. Another breach, a year later, affected 500 million accounts. The hack put to risk even encrypted passwords of users.

The now parent company, Verizon, will pay half the settlement cost while Altaba, the remaining part of Yahoo after the sale to Verizon will pay the other half.