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Intro

Are you worried about the safety of your personal information online? In June 2022, a former Amazon worker shocked the world by breaching Capital One’s security systems, compromising data from millions of people. This incident raises questions about the effectiveness of companies’ data protection measures. Discover the details of this alarming event and its implications for online security below.

The Amazon Data Breach Explained

What Happened?

In June 2022, a former Amazon worker, Paige Thompson, was charged for her involvement in a big security problem at Capital One in 2019. She used her knowledge from Amazon to get into Capital One’s computer systems and took personal information such as names, dates of birth, and social security numbers from more than 100 million people. This made many people worried about how well companies like Amazon protect their sensitive information. 

Amazon found out about this breach when they noticed some strange attempts to get into their systems. After checking, they realized that someone had gotten into their systems and stolen a significant amount of customer data. Sadly, it took a few months for this Amazon data breach to be uncovered, and during that time, the stolen information could have been misused by hackers.

Capital One was also held responsible for the data breach. The company was fined $80 million for not having good enough security measures. They also had to pay an extra $190 million to settle a lawsuit from people affected by the breach. This whole situation shows that companies like Amazon face challenges in keeping their users’ information safe from online threats.

In March 2023, ALPHV claimed to have hacked Ring, a security company owned by Amazon, but Amazon denied a Ring ransomware attack, suggesting a potential breach in a third-party company. No concrete proof of a data breach impacting Ring’s customers has emerged yet.

Timeline

Here’s what happened:

  • 2023 (March): Unsubstantiated Amazon Ring Data Theft Claim. The ALPHV ransomware group alleged they had breached Amazon’s Ring. However, Amazon found no evidence of such an event, suggesting a possible third-party vendor compromise instead.
  • 2022 (June): Former Amazon Employee Convicted in Capital One Breach. Paige Thompson, a former Amazon Web Services employee, was convicted of stealing data from over 100 million individuals, including sensitive personal information. She faced significant legal consequences, including a potential 45-year prison sentence.
  • 2021 (October): Twitch Data Breach Exposes Sensitive Information. An unknown hacker leaked 128GB of Twitch data, including source codes and earnings, on 4chan. Twitch, an Amazon-owned platform, confirmed the breach was due to a server configuration error.
  • 2021 (July): Amazon Fined €746 Million for GDPR Violations. The Luxembourg National Commission fined Amazon for mishandling personal data, which Amazon disputed, claiming no data breach had occurred.
  • 2020 (October): Amazon Customer Emails Leaked by Employees. Disgruntled Amazon employees voluntarily released customer email addresses to third parties, leading to their dismissal and raising concerns about internal data security.
  • 2020 (September): Bribery Scheme Uncovered Within Amazon’s Marketplace. Six individuals were indicted for bribing Amazon employees to manipulate the marketplace, illegally accessing customer data and attacking competitors.
  • 2020 (January): Insider Data Breach at Amazon. A group of Amazon employees shared customer contact information with external parties, leading to their terminations. The extent of the data shared remains unclear.
  • 2019 (September): Amazon Japan Users’ Data Exposed. Users were accidentally able to view others’ order histories and personal information due to a technical issue, later resolved by Amazon.
  • 2018 (November): Third-Party Seller Bribes Amazon Employees. Amazon’s security team discovered that Krasr, a third-party retailer, had bribed Amazon employees to sabotage competitors. The involved employees were fired, and Krasr was referred to the FBI.
  • 2018 (November): Amazon Customer Data Accidentally Exposed. Customer names and email addresses were inadvertently exposed online just before Black Friday due to a technical issue.
  • 2018 (September): Amazon Employees Selling Customer Data. An investigation revealed Amazon employees in China and the U.S. were illicitly selling customer data to external parties, highlighting ongoing internal security challenges.
  • 2018 (May): AMZReview’s Unauthorized Sale of Amazon Customer Data. Amazon found that AMZReview was selling customer data to third-party sellers, exposing up to 16 million customers, prompting Amazon to tighten data access controls. During this time, the French digital rights group La Quadrature du Net fought against the way Amazon obtained consent to targeted adverts. 
  • 2017 (May): Internal Exposure of Credit Card Data at Amazon. A cache of American Express credit card numbers was left unsecured on Amazon’s network, rendering the data accessible to employees for several months.
  • 2016 (July): Alleged Amazon Server Breach by Hacker #0x2Taylor. The hacker claimed to have obtained data on 80,000 Kindle users, but Amazon denied any breach had occurred.
  • 2016: Widespread Customer Purchase History Snooping by Amazon Employees. Due to widespread access privileges, employees reportedly spied on customers’ purchase histories, including celebrities, a practice common at the time.
  • 2015 (November): Amazon Forces Password Reset Amid Security Concerns. Amazon proactively reset many users’ passwords as a precautionary measure against potential security risks.
  • 2012 (January): 24 Million Accounts Exposed by Zappos Breach.
    A hacker breached Zappos, an Amazon-owned online store, exposing information from 24 million customer accounts. Fortunately, Amazon accounts were reportedly unaffected.

Will there be compensation?

It’s common for large-scale data breaches to result in compensation for affected individuals. The exact amount of the Amazon settlement may vary based on factors like the user’s location and the extent of the data breach.

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Am I Affected?

If you were affected, you should receive a data breach notification letter within 72 hours of its discovery. But, there have already been cases when these notices don’t get sent out at all, either as part of a cover-up to protect the company’s image or to avoid identifying users who might be entitled to compensation. So in case of a data leak, it’s a smart move to fill out the form and join the claim regardless. 

What To Do?

Whether you believe you were affected or are just exploring your options, you can quickly and easily check your eligibility and compensation amount with our quick data breach checker. In under two minutes, you’ll know how much money you can get and will be able to claim compensation. Give it a try!

Legal Proceedings and Amazon Settlement


Following La Quadrature du Net’s complaint in May 2018, the e-commerce giant faced serious consequences for exposing the personal information of millions of users. In July 2021, Ireland’s Data Protection Commission (DPC) imposed a hefty £636 or (€746) million punishment on Amazon for breaking the European Union’s General Data Protection Regulation. The DPC launched an urgent investigation following the incident and questioned Amazon’s compliance with GDPR regulations. The breach led to the alleged sale of 14 million hacked Amazon and eBay accounts online, which shows that the consequences should be beyond financial litigation.

In 2023, Amazon received a $30 million penalty from the Federal Trade Commission (FTC) for the incident involving Amazon’s subsidiaries, Ring and Alexa. These Amazon privacy leaks exposed sensitive user information, which raised concerns about the company’s data protection practices. Amidst ongoing challenges, Amazon’s data protection failures mirrored its previous controversies, such as the 2012 Zappos breach and the 2018 AMZReview hack. The incidents reflect the critical importance of robust data protection measures in the face of evolving cyber threats.

How to Claim Amazon Compensation

If you want to get compensation for the data breach, you need to join a group lawsuit, also known as a class action. When you do this, you’ll work with a financial litigation partner who handles everything for you. That is us! Your task is just to apply and then wait to get money

Remunzo handles all the hard work. We set up the lawsuit and take the corporation to court for you. Corporations don’t want to pay money easily, but Remunzo will fight hard to get your settlement payout. When joining thousands of others in a lawsuit like this, the corporation is more likely to pay and the settlement payment amount per person i.e. how much will you get tends to be higher.

Remunzo will keep you updated about the settlement status. But you need to be patient because it can take months till the settlement payments are done and you get paid

Quickly check your eligibility and compensation amount with our simple data leak checker. In under 2 minutes, you’ll know how much money you can get and will be able to claim compensation. Give it a try!

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Claim your data breach compensation! Fill out our simple form in two minutes and discover your potential payout.

Impact on Amazon Users

The Amazon privacy leak revealed comprehensive user information, including names, addresses, and contact information, that affected millions over the course of many months. This incident dramatically reduced users’ trust in Amazon’s security measures and raised fears about identity theft and harmful activity incidents. The aftermath of the Amazon hack revealed that a cybercriminal group exploited the compromised data, selling 14 million Amazon accounts online. The consequences went beyond financial litigation. The exposed data contained a wide range of sensitive information, increasing the dangers for impacted users. 

When Amazon was fined due to privacy violations of its subsidiaries, it highlighted the larger impacts of networked smart home gadgets, as well as the crucial need for strong data protection in the constantly expanding IoT ecosystem. The exposure of sensitive information not only jeopardized user privacy but also prompted a reevaluation of the security practices within the smart home ecosystem.

Amazon drew criticism for failing to sufficiently protect user data, as shown by the reports. This emphasizes the real-world consequences for users, amplifying the risks of identity theft and fraudulent activities. Amazon’s data protection practices raised further concerns and provided the urgency for comprehensive security measures to rebuild user confidence in the platform. The GDPR penalty highlighted the regulatory implications and demonstrated the necessity of accountability and adherence to data protection legislation in the aftermath of such breaches.

Amazon’s Response and Changes in Data Security

In response to the Amazon data breach, the company has undertaken significant efforts to address data security concerns and bolster user protection. Indeed, Amazon acknowledged the breach publicly and swiftly implemented a comprehensive response plan to mitigate the impact on affected users. Amazon spokesperson Jen Bemisderfer stated in an email that the company has a strong track record in safeguarding customer data, asserting that the extensive documentation of privacy and security issues reflects their commitment. She also stated, “We’ve invested billions of dollars over the years to build systems and processes to keep data secure, and are constantly looking for ways to improve.” The company has committed to enhancing its data protection measures to prevent similar incidents in the future. 

One key aspect of Amazon’s response involves a thorough review and reinforcement of its internal security protocols. The company has been actively working to identify and rectify vulnerabilities within its systems. This includes conducting in-depth investigations into the breach to understand the extent of the compromise and taking corrective measures to fortify its defenses.

Moreover, Amazon has responded to privacy violations concerning its subsidiaries, Alexa and Ring, by paying around $30 million in settlement to the Federal Trade Commission. This demonstrates the company’s dedication to holding itself accountable for lapses in data security. Additionally, Amazon is actively collaborating with regulatory bodies to ensure compliance with data protection laws.

In alignment with the commitment to user safety, Amazon is proactively engaging with users to educate them on the best practices for safeguarding their accounts and personal information. Amazon has invested in educating users about protecting their smart home data, indicating a holistic approach to user empowerment and data security. This ongoing effort to enhance data protection and transparency reflects Amazon’s commitment to prioritizing user privacy.

Future Implications and Impact on the Industry

The aftermath of the Amazon data breach holds significant implications for the future and had a profound impact on the industry. The breach has sparked a reevaluation of data protection practices and led to anticipated changes in regulations and corporate behavior. In response to the Amazon data leak, there is a growing demand for increased corporate responsibility and transparency. The settlements imposed on Amazon, including the £636 (or €746) million GDPR fine, reflect the need for companies to take data protection seriously. This incident is likely to influence the development of comprehensive privacy acts, forcing companies to prioritize user information security.

The Amazon breaches of privacy have also prompted a shift in the industry’s approach to data collection and monetization. Companies, in the aftermath of the incidents, are expected to reassess their data practices and prioritize enhanced transparency. This cultural change within the industry reflects a broader recognition of the importance of ethical and secure data handling. The lessons learned from the Amazon hack are poised to shape the future landscape of data protection, with a heightened focus on accountability, transparency, and the ethical use of user information.

Other Famous Incidences of Privacy Breaches

Amazon is not the only one who got its data stolen. Hundreds of other companies have faced or will face data breaches. Therefore, we strongly suggest using our Compensation Calculator. This tool will help you find out how many compensation claims you are eligible for and how much money you might get — and we can help you easily get it.

Conclusion

In conclusion, the Capital One data breach involving former Amazon worker Paige Thompson highlighted significant security vulnerabilities within companies’ systems, prompting concerns about data protection. The subsequent legal actions and hefty fines imposed on Amazon underscored the gravity of the situation, emphasizing the need for robust data security measures. Despite facing challenges, Amazon has responded decisively by implementing comprehensive measures to strengthen data protection and prevent future breaches. Through proactive engagement with users and regulatory bodies, Amazon demonstrates a commitment to prioritizing user privacy and enhancing transparency. However, the incident serves as a stark reminder of the evolving nature of cyber threats and the continuous need for vigilance in safeguarding sensitive information.

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Are you missing out on other data breach payouts? Try our compensation calculator and find out now!

Frequently Asked Questions

How to minimize or prevent Data breach impact?

Using virtual payment cards with spending limits and unique email addresses for different services can greatly reduce the risks of data breaches. Disposable virtual cards protect your financial details, while custom email addresses (like “yourname+service@gmail.com”) help identify compromised services. These strategies add security layers, minimizing the impact of breaches on your personal and financial data.

What to do after a data breach?

In case of a data breach, promptly change your passwords on the affected accounts, making them strong and unique. Activate two-factor authentication for added security. Monitor your financial statements and credit reports for any unusual activity. Alert your bank or credit card provider about potential fraud. Be cautious of phishing scams following the breach and consider a credit freeze. Finally, report the incident to the appropriate authorities.

What is a Data breach notice?

A data breach notice is an official alert sent by an organization to individuals whose personal data, including potentially compromised passwords, may have been exposed in a security breach. Such a notice can often follow warnings from services like Apple or Google indicating that “this password appeared in a data leak.” It details the nature of the breach, affected data types, potential risks, and the organization’s remedial actions. The notice advises on protective measures, such as changing passwords and monitoring credit reports to mitigate harm.

Can I sue, and how to join a class action lawsuit?

Yes, you can sue for a data breach. With Remunzo, joining an active class action lawsuit is easy. Check your eligibility on our platform, and if your case is active, you can join the lawsuit. Remunzo handles all legal proceedings and negotiations for a settlement. These processes can take some time, but we keep you updated throughout. Use our Quick Data Leak Checker to see if you qualify to join and claim compensation.

When will I get paid the data breach settlement?

The time it takes to receive a data breach settlement payment varies, often taking several months after a settlement is reached. Factors like case complexity, number of claimants, and legal procedures affect the timeline. Remunzo will keep you informed about the settlement progress, but patience is key as these processes can be lengthy.

Sources

  1. Amazon to pay $31 million in fines for Alexa voice assistant and Ring camera privacy violations [Internet]. PBS NewsHour. 2023. Available from: https://www.pbs.org/newshour/politics/amazon-to-pay-31-million-in-fines-for-alexa-voice-assistant-and-ring-camera-privacy-violations 
  2. Evans W. Amazon’s dark secret: It has failed to protect your data. WIRED [Internet]. 2021 Nov 18; Available from: https://www.wired.com/story/amazon-failed-to-protect-your-data-investigation/
  3. Heiligenstein MX. Amazon Data breaches: Full timeline through 2023 [Internet]. Firewall Times. 2023. Available from: https://firewalltimes.com/amazon-data-breach-timeline/ 
  4. Hendery S. Amazon to pay $30.8M for Alexa and Ring privacy violations. SC Media [Internet]. 2023 Jun 1; Available from: https://www.scmagazine.com/news/amazon-30-8m-alexa-ring-privacy-violations 
  5. Meyer B. 14 million alleged Amazon and eBay account details sold online. Cybernews. [Internet]. 2023 Nov 15; Available from: https://cybernews.com/security/14-million-amazon-and-ebay-accounts-sold-online-in-new-leak/ 
  6. Postman K. Amazon fined £636 (€746) million for GDPR breach [Internet]. Keller Postman UK Data Breach. 2022. Available from: https://www.kellerpostman-databreach.co.uk/amazon-fined-636-million-for-gdpr-breach/ 
  7. Reichert C. Amazon to pay $30M for Ring and Alexa privacy Violations: Tips for protecting your smart home data. CNET [Internet]. 2023 Jun 1; Available from: https://www.cnet.com/tech/services-and-software/amazon-to-pay-30-m-for-ring-and-alexa-privacy-violations-tips-for-protecting-your-smart-home-data/ 
  8. TechCrunch is part of the Yahoo family of brands [Internet]. 2022. Available from: https://techcrunch.com/2022/10/27/amazon-prime-video-server-exposed/ 

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