Federal Trade Commission Bites Back After Drizly Data Breach

  • By Steven
  • Nov 03, 2022

Drizly Data Breach

Drizly delivers wine, beer, spirits, and other liquors to adults over the drinking age. This helps to keep intoxicated drivers off the streets, making roads safer. As a result, it has been a much-used service. Drizly has over 100 million users between Canada and the US. In 2018, Drizly was allegedly notified of an easy way to compromise its systems and ignored the notification.

How Did the Attack Occur?

Drizly never released how the cyber attack occurred. According to the FTC, or Federal Trade Commission, in 2018, a Drizly executive was given login credentials. This certainly doesn’t sound abnormal, but here’s the crazy part; when the executive had access, the company underwent a hackathon. The hacker used Drizly’s servers to mine bitcoin, and the executive left the company soon after that. In 2020, malicious actors used that same executive’s login to institute the hack that affected millions.

What Information Was Viewed or Stolen?

The stolen information involved emails, hashed passwords, birthdays, and less than two percent of cases involved delivery addresses. The FTC’s order proposes that Drizly delete all data it has on customers that is not completely necessary for its business to run.

What Did Drizly Do After the Breach?

After the breach, Drizly agreed to a settlement of about 2 million dollars. Since then, Drizly claims to have beefed up its security and hasn’t suffered another data breach to date. That won’t stop the order, in which the FTC targets Drizly CEO James Cory Rellas directly, holding him responsible for the violation. “Our proposed order against Drizly not only restricts what the company can retain and collect going forward but also ensures the CEO faces consequences for the company’s carelessness,” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said. “CEOs who take shortcuts on security should take note.”

What Will Become of the Stolen Information?

The hacker doesn’t seem able to do much with the stolen information. While two percent of 2.5 million is 50,000, there could have been much more damage regarding customer addresses. Simply having the accounts’ associated emails poses enough danger; having your home address in the hands of a hacker is terrifying.

What Should Affected Parties Do in the Aftermath of the Breach?

In the aftermath of the breach, affected individuals should consider visiting the FTC website to find out more about the breach and the FTC’s order. You can also look at places like CNN and JD Supra that are keeping up with the updates to the FTC order and the aftershocks of the breach. And, of course, as always, you should take as many steps as possible to protect yourself, your devices, and your loved ones. There is software made for this express purpose; looking around your device and helping to ensure that you don’t have any personal information anywhere unauthorized. Even if you weren’t involved in the breach, you should still do your best to stay safe.

About the Author
IDStrong Logo

Related Articles

Instagram Vulnerability Allowed Hackers Access to Control Your Phone

Security experts Check Point Research discovered a critical vulnerability while examining Instagra ... Read More

Alien Malware Infects More than 226 Mobile Apps and Steals Bank Data

As reported on September 24, 2020, by ZDNet and ThreatPost, a new strain of malware named “A ... Read More

Universal Health Systems Hit by Ransomware Attack

Universal Health Systems (UHS), a Fortune 500 company owning more than 400 hospitals across the co ... Read More

Exchange Server Bug Exposes a Big Risk to Hackers

Months after Microsoft released a patch to fix a serious flaw in MS Exchange Server, more than 61% ... Read More

Clients’ Bank Data Exposed in Blackbaud Ransomware Attack

Blackbaud software was victim to a ransomware attack last May, and new information suggests that c ... Read More

Latest Articles

Data Breach of Healthcare Management Solutions, LLC Affects Half-a-Million People

Data Breach of Healthcare Management Solutions, LLC Affects Half-a-Million People

Healthcare Management Solutions, known as a healthcare-related consulting company from West Virgini, has over 100 employees and brings in nearly $20M annually.

How to Remove Hard Inquiries from a Credit Report

How to Remove Hard Inquiries from a Credit Report

A credit score is an invisible number, yet it often feels like it controls our lives. It determines what we can buy and how much we'll have to pay.

What is Endpoint Security, and Why is it Important?

What is Endpoint Security, and Why is it Important?

Businesses can make every effort to beef up corporate network security, but those improvements mean very little if criminals choose to break into an already connected device.

Featured Articles

How to Buy a House with Bad Credit

How to Buy a House with Bad Credit

Buying your own home is the American Dream, but it might seem out of reach to those with bad credit. However, the good news is, if your credit is less than perfect, you do still have options and in most cases, can still buy a home.

How Secure Is Your Password? Tips to Improve Your Password Security

How Secure Is Your Password? Tips to Improve Your Password Security

Any good IT article on computers and network security will address the importance of strong, secure passwords. However, the challenge of good passwords is that most people have a hard time remembering them, so they use simple or obvious ones that pose a security risk.

Top 10 Senior Scams and How to Prevent Them

Top 10 Senior Scams and How to Prevent Them

Senior scams are becoming a major epidemic for two reasons. First, seniors often have a lot of money in the bank from a life of working hard and saving.

Free Identity Threat Scan
Instantly Check if Your Personal Information is Exposed
All fields below are required
Please enter first name
Please enter last name
Please enter a city
Please select a state
Please enter an email address
Close