CASE STUDY #1: Uber Announces New Data Breach Affecting 57 Million Riders and Drivers Ridesharing company Uber Technologies, Inc. has disclosed that hackers have stolen the personal information of about 57 million customers and drivers, according to a report by Bloomberg News. The news outlet also reported that Uber discovered the data breach in late 2016 and then waited to disclose the news almost a year later. What was stolen? Chief Executive Officer Dara Khosrowshahi states in a press release on Uber’s website that the stolen information included the following: • The names and driver’s license numbers of around 600,000 drivers in the United States were stolen. It is important to note that the driver’s license numbers affect the drivers working for Uber and not their ridesharing customers. • Aside from the driver’s license numbers, other personal information of all 57 million Uber riders and drivers around the world was compromised: names, e-mail addresses, and mobile phone numbers. • According to the company’s statement: “Our outside forensics experts have not seen any indication that trip location history, credit card numbers, bank account numbers, Social Security numbers or dates of birth were downloaded.” Uber rider or driver? For Uber riders, the company says it doesn’t believe affected individuals need to take action. “We have seen no evidence of fraud or misuse tied to the incident,” its statement to riders said. “We are monitoring the Affected accounts and have flagged them for additional fraud protection.”Uber has stated that it’s notifying affected drivers whose driver’s license numbers were accessed and areproviding them with free credit monitoring and identity theft protection service. The company is providing additional information for its drivers on its website. How did the Uber breach happen? Uber said two (2) people who didn’t work for the company accessed the data on a third-party cloud-based service that Uber uses. The company also said that outside forensics experts had not seen evidence that the hackers accessed other types of information. Study Questions: A. What is the write-up all about? What technology-related issue/s is/are apparent? B. What possible impacts or problems may arise in conjunction with the data breach? C. How can Uber Technologies, Inc. and other similar businesses prevent such from happening again? What measures can you recommend? D. Considering this scenario, would you consider technological developments as advantageous? Why or why not? Justify your responses. E-Commerce IssuesEthics is at the center of social and political discussions about the Internet. Ethics is the study of principles thatindividuals and organizations can use to determine right and wrong courses of action. It is assumed in ethicsthat individuals are free moral agents who are in a position to make choices. Extending ethics from individualsto business firms and even entire societies can be difficult but not impossible.E-commerce and the Internet have raised so many ethical, social, and political issues that can be categorizedinto four (4) major dimensions: privacy and information rights, intellectual property rights, governance, andpublic safety and welfare.Privacy Issues – Privacy is possibly the most complex ethical issue raised by e-commerce, as well as thechanging technology of human communications brought about by the Internet and mobile devices. Theclaim to privacy rests on the moral right of individuals to be left alone, free from surveillance orinterference from other individuals or organizations, including the government.E-commerce sites routinely collect a variety of information from or about consumers' visits and purchases.Some of these data constitute personally identifiable information (PII), or any data that can be used toidentify, locate, or contact an individual. Advertising networks and search engines also track the behaviorof consumers across thousands of popular sites via cookies (small files that are stored on a user's computerto hold a modest amount of data specific to a particular client and website), web beacon (often-transparent graphic image, usually no larger than 1 pixel x 1 pixel, that is placed on a website or in an e-mail to monitor the behavior of the user visiting the Web site or sending the e-mail), spyware (anysoftware that covertly gathers user information through the user's Internet connection without theirknowledge, usually for advertising), and other techniques. These activities are just a few of the issueslinked to privacy over the conduct of e-commerce.Intellectual Property Rights – Next to privacy, the most controversial issue related to e-commerce is thefate of intellectual property rights. Intellectual property encompasses all the tangible and intangibleproducts of the human mind. Intellectual property protection in the Philippines is contained in RepublicAct No. 8293, otherwise known as the Intellectual Property (IP) Code of the Philippines. The term"intellectual property rights" in the Code consists of copyright and related rights, trademarks and service03 Handout 1*PrTH2106marks, geographic indications, industrial designs, patents, layout designs of integrated circuits, andprotection of undisclosed information.Generally, the creator of the intellectual property owns it and has the exclusive right to use it in any lawfulway they see fit. The Internet, however, changes things. Once intellectual works become digital, itbecomes difficult to control access, use, distribution, and copying.The Internet technically permits millions of people to make perfect digital copies of various works, frommusic to plays, poems, and journal articles, and then distribute them nearly cost-free to hundreds ofmillions of online users. It has demonstrated the potential to disrupt the traditional conceptions andimplementations of intellectual property law. The major ethical issue relating to e-commerce in this regardis how individuals and business professionals should treat property that belongs to others.Governance – Governance, as it relates to e-commerce, has something to do with social control: who willcontrol the Internet, what elements will be controlled, and how the controls will be implemented. Controlissues revolve around the Internet that could not be controlled, given its decentralized design and its abilityto cross borders that made monitoring and controlling message content impossible. This implies that thecontent and behavior of e-commerce sites cannot be "controlled" in the same way. Another issue istaxation. Governments collect sales taxes based on the type and value of goods sold. The money is usedfor general government purposes and building infrastructures. However, the development of the "remotesales," such as mail order/telephone order (MOTO) or online purchasing, broke the relationship betweenphysical presence and commerce, complicating the plans of the government to tax all retail commerce.Public Safety and Welfare – Critical issues in e-commerce center around the protection of children, strongsentiments against pornography in any public media, efforts to control gambling, and the protection ofpublic health through restricting the sales of drugs and cigarettes online. Technological Building Blocks of E-CommerceThe technological building blocks behind e-commerce are the following (Laudon & Traver, 2017):Internet – It is a worldwide network of computer networks built on common standards. It links businesses,educational institutions, government agencies, and individuals together, and provides users with servicessuch as e-mail, document transfer, shopping, research, instant messaging, music, videos, and news.World Wide Web – It is an information system that runs on the Internet infrastructure. It was the original"killer app" that made the Internet commercially interesting and extraordinarily popular. It provides accessto billions of Web pages indexed by Google and other search engines. Before the Web, the Internet wasused mainly for text communications, file transfers, and remote computing. The Web introduced morepowerful and commercially interesting capabilities with direct relevance to commerce. It added color,voice, and video to the Internet, creating a communications infrastructure and information storagesystem.Mobile platform – It provides the ability to access the Internet from a variety of mobile devices such assmartphones, tablets, and other ultra-lightweight laptop computers via wireless networks or cell phoneservice. An app (short for application) is a software application, which is typically used when referring tomobile applications, although it is sometimes used to refer to desktop computer applications as well. Amobile browser is a version of Web browser software accessed via a mobile device.

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CASE STUDY #1: Uber Announces New Data Breach Affecting 57 Million Riders and Drivers Ridesharing company Uber Technologies, Inc. has disclosed that hackers have stolen the personal information of about 57 million customers and drivers, according to a report by Bloomberg News. The news outlet also reported that Uber discovered the data breach in late 2016 and then waited to disclose the news almost a year later. What was stolen? Chief Executive Officer Dara Khosrowshahi states in a press release on Uber’s website that the stolen information included the following: • The names and driver’s license numbers of around 600,000 drivers in the United States were stolen. It is important to note that the driver’s license numbers affect the drivers working for Uber and not their ridesharing customers. • Aside from the driver’s license numbers, other personal information of all 57 million Uber riders and drivers around the world was compromised: names, e-mail addresses, and mobile phone numbers. • According to the company’s statement: “Our outside forensics experts have not seen any indication that trip location history, credit card numbers, bank account numbers, Social Security numbers or dates of birth were downloaded.” Uber rider or driver? For Uber riders, the company says it doesn’t believe affected individuals need to take action. “We have seen no evidence of fraud or misuse tied to the incident,” its statement to riders said. “We are monitoring the Affected accounts and have flagged them for additional fraud protection.”Uber has stated that it’s notifying affected drivers whose driver’s license numbers were accessed and areproviding them with free credit monitoring and identity theft protection service. The company is providing additional information for its drivers on its website. How did the Uber breach happen? Uber said two (2) people who didn’t work for the company accessed the data on a third-party cloud-based service that Uber uses. The company also said that outside forensics experts had not seen evidence that the hackers accessed other types of information. Study Questions: A. What is the write-up all about? What technology-related issue/s is/are apparent? B. What possible impacts or problems may arise in conjunction with the data breach? C. How can Uber Technologies, Inc. and other similar businesses prevent such from happening again? What measures can you recommend? D. Considering this scenario, would you consider technological developments as advantageous? Why or why not? Justify your responses.