(Reuters) – Marriott International said on Friday that hackers stole about 500 million entries from their Starwood Hotels reservation system…
(Reuters) – Marriott International said on Friday that hackers stole about 500 million entries from their Starwood Hotels reservation system in an attack that began four years ago and revealed personal data from customers, including some debit card numbers.
The Marriott hotel logo is seen in Vienna, Austria, April 9, 201
8. REUTERS / Heinz-Peter Bader
The shares in the company were 4 percent lower at 117 USD in premarket trading.
The hack began in 2014 before Marriott offered to buy Starwood for $ 12.2 billion in November 2015 and acquired brands including the Sheraton, Ritz Carlton and Autograph Collection to create the world’s largest hotel operator. The company closed the Starwood agreement in September 2016.
Marriott said for 327 million guests, compromise data could contain passports, phone numbers and e-mail addresses. For some others, it may contain credit card information.
Marriott said it first found out the violation after an internal security tool sent a warning on September 8th.
“We have opened a survey of Marriot’s violation of the violation. In addition, according to the New York Law, Marriott was required to report to our office to detect the violation, yet they have not done so yet,” said Amy Spitalnick,
Communications Director and Senior Policy Advisor, the New York Attorney General.
Marriott said it would inform affected guests about the violation, starting Friday, and reported it to law enforcement agencies and regulatory authorities.
Several companies have been affected by data hijacking Last year, the crime could cost Marriott hundreds of millions of dollars in legal costs.
Yahoo said last year where all its three billion accounts hacked in a data theft in 2013. Lawyers had said that the violation greatly increased the legal exposure of its new owner Verizon Communications Inc .
Altaba Inc., as Yahoo came to be known after Verizon bought it, said it for expected to pay a total of $ 47 million in legal costs to resolve related cases.
News about the attack highlighted the need for companies to pay attention to cyber security when acquiring.
“An understanding of the investment in cyber security is crucial for assessing the value of the investment and considering the reputation, financial and legal damage that may come from the company,” said Jake Olcott, vice president of cyber security company BitSight.
Marriott said on Friday that it was too early to estimate the economic consequences of the infringement and that it would not affect long-term economic health. The hotel chain said it worked with its insurance companies to assess the coverage.
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