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eBay likely to face investigations in both the U.S. and Europe

Three states in the U.S. have initiated a joint investigation into whether the company had adequate security measures to protect user data.

By Ananth Baliga
Ebay said earlier this week that a large number of account passwords had been accessed during a cyber attack but hasn't given specify details so far. (Credit: Ryan Fanshaw)
Ebay said earlier this week that a large number of account passwords had been accessed during a cyber attack but hasn't given specify details so far. (Credit: Ryan Fanshaw)

SAN JOSE, Calif., May 23 (UPI) -- eBay could face investigations in Europe and the U.S. after a security breach compromised user passwords and gave attackers access to its corporate network.

The online auction site could be investigated by European watchdogs, after three U.S. states -- Illinois Connecticut and Florida -- launched a joint probe into how the company handled its security.

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"Our office has been in contact with the company, and our inquiry will focus on the measures the company had in place in regards to the security of personal information prior to the incident, the circumstances that led to the breach, how many users were affected, the company's response to the breach and what measures the company is taking to prevent future incidents," said Jaclyn Falkowski, a spokeswoman for Connecticut Attorney General.

The United Kingdom's information commissioner, Christopher Graham, said that the breach was very serious but that the commission will not investigate the company yet. Graham, talking to BBC Radio 5 live, reminded listeners that the commission had fined Sony $421,000 for its PlayStation Network data breach in 2011.

"eBay is, on the face of it, a very serious breach," Graham said. "The message for business is you've got to be better at security and you've got to be better with our personal data."

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New York Attorney General Eric Schneiderman said eBay should allow users to access free credit monitoring to check their credit records.

"New Yorkers and eBay customers across the country trust that retailers will protect their personal information when they shop online. Our office has asked and fully expects eBay to provide free credit monitoring services to customers impacted by this breach," Schneiderman said on his website.

eBay has so far refused to comment on whether the passwords were hacked or encrypted and how many passwords were compromised. Questions have also been raised as to why it took the company this long to identify the breach.

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