Essay about soft bank

890 Words Jan 17th, 2014 4 Pages
Info 6027 Case Study

Project One
Softbank – theft of consumer data for extortion
Please read the report published by the IAPP in the journal Privacy Advisor.
Organisations do not normally volunteer any information about any sort of security breach unless they are compelled in some way. The incident described is no exception, it concerned Yahoo! BB and
Softbank BB.
Softbank of Japan offered broadband internet services across Japan through two subsidiaries – Yahoo!
BB and Softbank BB. In February 2004, the bank announced that the security of 4.5 million customer records had been compromised: data from both subsidiaries had been illegally copied and disseminated.
The leaked details included customer names, home phone numbers,
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The decision stated that defendant BB Technology had violated its duty of care, as a business that holds a large amount of personal information, to prevent the improper access and leakage of personal information. The court noted that, after the former contract employee left the company, the company did not change the username and password, which were subsequently used by other workers. The court concluded that BB Technology could have foreseen the improper access to the company computer network by the former contract employee, and that the information leakage could have been prevented with appropriate security measures, and awarded a total of 6,000 yen each to the plaintiffs;
5,000 yen in compensation for emotional distress and 1,000 yen for lawyer's fees.
Japan does not have a U.S. style class-action system, and the group of plaintiffs is but a small fraction of the 4.6 million affected customers of Yahoo!BB. After the incident, BB Technology had tried to appease all such subscribers and prevent any such litigation by issuing a 500 yen (approximately


Info 6027 Case Study
$4.50) cash voucher as "apology money" to each subscriber of its Yahoo!BB service. BB Technology may yet decide to appeal the decision, but this case may signal the opening of the floodgates to other private lawsuits of this kindin Japan.
This incident occurred before the Law Concerning the Protection of Personal Information (PIPL)

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