- Associated Press - Thursday, October 11, 2018

SIOUX FALLS, S.D. (AP) - South Dakota will get more than a half-million dollars from a judgment against Uber, even though the ride-hailing service isn’t currently available in the state.

Uber Technologies Inc. recently agreed to pay $148 million to all 50 states and the District of Columbia over a massive data breach in 2016. South Dakota will receive $573,488 as part of the national settlement.

Assistant Attorney General Phil Carlson told the Rapid City Journal that even though Uber isn’t operating in the state, there were about 70 drivers with South Dakota addresses whose information was compromised.

The state’s share will fund consumer protection efforts within the Attorney General’s Office, according to Carlson.

In November 2017, Uber acknowledged that hackers had obtained the personal data of roughly 600,000 GPS-tracked drivers, who are summoned to pick up riders from a cellphone app. The company took a year to report the 2016 breach, instead tracking down the hackers and paying a ransom to destroy the information.

South Dakota joined the states in their multi-party lawsuit, claiming that the ride-sharing company was required by law to report such breaches. South Dakota law requires identity hacks to be reported to the state within 60 days.

“We didn’t organize it (the lawsuit). We weren’t a part of the group that was running the investigation,” Carlson said. “We were merely a participating member.”

South Dakota sought $2,000 per deceptive act and $10,000 per day that Uber failed to notify the public about the breach.

The settlement also laid out further security steps for Uber, including improved privacy protection for drivers and riders, better protection of user data the company stores on third-party platforms and the hiring of an outside security consultant.

Carlson said that Uber “may come to our state at some time in the future.” The company’s competitor, Lyft, currently operates in Rapid City, Pierre, Aberdeen and Sioux Falls.

Uber spokeswoman Charity Jackson said the company’s “goal is to be in South Dakota.” Uber has been cleared to operate in South Dakot but hasn’t yet entered the marketplace.


Information from: Rapid City Journal, http://www.rapidcityjournal.com

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