Yahoo Faces Security Breach Lawsuit

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A Yahoo user has sued the company after his login information was published online following last month's massive data breach.

"A complaint was filed at the end of last month in federal court in San Jose, California, which stated that the user's login information was posted online -- naturally, without his consent," writes ZDNet's Charlie Osborne. "The information apparently appeared online after a hacker broke into one of the company's databases on July 11."

"Jeff Allan of New Hampshire said in his complaint that Yahoo failed to adequately safeguard his personal information and seeks an order requiring the company to compensate him and other users for account fraud and for measures they have had to take to protect accounts put at risk by the Yahoo breach," writes Bloomberg's Karen Gullo. "Yahoo said on July 12 that hackers took a file containing login credentials for Yahoo and other accounts, such as Google Inc.'s Gmail, Microsoft Corp.'s Hotmail and AOL Inc., from a Yahoo site featuring user articles, videos and slideshows."

"[Allan] said he received a fraud alert at his eBay Inc. account, which had a login exposed by the Yahoo hackers," the San Francisco Business Times reports.

"In June, a class action lawsuit was launched against a victim of a similar hack, LinkedIn, after over six million of the social network’s user passwords were stolen and posted online," writes TechWeekEurope's Max Smolaks. "In contrast with Yahoo, LinkedIn actually encrypted its passwords, but did not 'salt' the files to make them harder to decrypt."