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ARTICLE · 30 OCTOBER 2019

Revising Cloud Contracts In Light Of Capital One Cyberattack

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On July 30, Capital One Financial Corp., the fifth largest U.S. credit card issuer, reported that approximately 106 million card customers'...

United StatesTechnology

On July 30, Capital One Financial Corp., the fifth largest U.S. credit card issuer, reported that approximately 106 million card customers' and applicants' personal information was stolen by a hacker in late March.

The breach implicated 140,000 Social Security numbers and 80,000 bank account numbers, as well as credit scores, payment histories and credit limits of individuals associated with Capital One. The stolen data was stored on the Amazon Web Services Inc. cloud and, according to Capital One, was stolen via a misconfigured firewall on an AWS bucket (i.e., a cloud server used to store sensitive information).

Because its security defenses did not detect it, Capital One was not alerted of the intrusion until July 17 — almost four months later — when a third party notified Capital One of the attack. Recent federal investigations identified the hacker as a former employee of AWS.

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