SAN FRANCISCO: LivingSocial, the second-largest daily deal company behind Groupon Inc, said on Friday it was hit by a cyber attack that may have affected more than 50 million customers.
The company said the attack on its computer systems resulted in unauthorised access to customer data, including names, email addresses, date of birth for some users and "encrypted" passwords.
LivingSocial stressed customer credit card and merchants' financial and banking information were not affected or accessed. It also does not store passwords in plain text.
"We are actively working with law enforcement to investigate this issue," the company, part-owned by Amazon.com Inc, wrote in an email to employees.
LivingSocial does not disclose how many customers it has.
However, spokesman Andrew Weinstein said "a substantial portion" of the company's customer base was affected. LivingSocial is also contacting customers who closed accounts, because it still has their information stored in databases, he added.
The attack hit customers in the US, Canada, the UK, Ireland, Australia, New Zealand, Malaysia, Southern Europe and Latin America. Customers in South Korea, Indonesia, Philippines and Thailand were not affected, Weinstein said.
"In light of recent successful widespread attacks against major social networking sites, it's obvious that these providers are simply not doing enough to protect their customers' information," said George Tubin, senior security strategist at Trusteer, a computer security company.
The attack comes as LivingSocial struggles to handle a decline in consumer and merchant demand for daily deals. The company raised US$110 million from investors, including Amazon earlier this year, but was forced to make large concessions to get the new money.
Amazon invested US$56 million in LivingSocial in the first quarter, according to a regulatory filing on Friday, which also revealed the company had a first-quarter operating loss of US$44 million on revenue of $135 million.
LivingSocial said on Friday it was beginning to contact more than 50 million customers whose data may have been affected by the cyber attack.
LivingSocial told customers in an email that they should log on to LivingSocial.com to create a new password for their accounts.
"We also encourage you, for your own personal data security, to consider changing password(s) on any other sites on which you use the same or similar password(s)," LivingSocial chief executive Tim O'Shaughnessy wrote in the email.
The ringgit opened sharply higher against the US dollar, in early trading Monday, prompted by encouraging buying interest, a dealer said.
At 9am, the ringgit was quoted at 3.0274/0335 versus the greenback against Friday's close of 3.0340/0370.
The dealer said investors' interest were spurred by market talk on monetary easing in Japan and Europe which was expected to boost demand for emerging-market assets.
"Investors also shifted away from the US dollar after the giant economy posted a weaker-than-expected first-quarter Gross Domestic Product growth of 2.5 per cent on Friday, below expectations of three per cent," the dealer added.
Meanwhile, the ringgit was traded mixed against other major currencies.
The local note strengthened against the Singapore dollar to 2.4490/4540 from 2.4559/4597 on Friday and rose against the euro to 3.9503/9583 from 3.9715/9763 previously.
It depreciated against the Japanese yen to 3.1000/1000 from Friday's 3.0591/0624 and declined against the British pound to 4.6913/7008 from 4.6602/6657 previously.-- Bernama
A Mississippi man was charged Saturday with attempting to use a biological weapon after a ricin-laced letter was sent to President Obama. Deborah Lutterbeck reports.
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TUPELO, Miss. — What looked at first like classic terrorism — poisoned letters sent to the president and other public officials — now seems more likely to be the product of a local feud between two not-so-good-old boys straight out of a Faulkner story, albeit with Facebook pages.
In the past week, the FBI has arrested Kevin Curtis, released him, and then, on Saturday, arrested his online sparring partner, Everett Dutschke.
Each has accused the other of trying to frame him as the sender of ricin-tainted letters that, coinciding with the Boston Marathon bombing, reminded a jittery nation of the deadly anthrax attacks that followed 9/11.
Dutschke faces a federal charge of producing and possessing a biological agent for use as a weapon, U.S. Attorney Felicia Adams said Saturday. The charge can result in a life sentence and a $250,000 fine. Dutschke is expected to appear in court Monday.
A terrorism motive, at least, might have some logic. But the story spinning out in this city of Elvis Presley's birth is as implausible as an Elvis sighting.
Who knows what The King would have made of Curtis and Dutschke? But William Faulkner, the Nobel laureate who lived down the road in Oxford, would have appreciated their Southern Gothic obsessions and secrets, their eccentricities, their capacity for vendetta.
Curtis, 45, is a sometime Elvis impersonator with bipolar disorder who has long warned of a seemingly imaginary underground traffic in stolen body parts at the hospital from which he was fired as a janitor.
Dutschke, 41, is a blues band front man, martial arts teacher, failed political candidate and indicted child molester. He's also a former member of Mensa, the society for those with high IQs.
If the sender of the ricin letters did come from Tupelo or environs, it would be the biggest crime here since the gangster Machine Gun Kelly robbed a local bank in 1932. Most people don't know what to make of this case, other than they don't like the attention.
Tupelo is known worldwide for Elvis, says local resident Carley Johnston, "and we want to keep it that way.''
Another perspective is offered by Curtis Wilke, a former national correspondent for the Boston Globe who teaches at the University of Mississippi.
"I've thought, 'God, I wish I were still a reporter; it'd be fun to cover this story.' " Wilke says. "Neither of them seems very sophisticated. Make a weapon of mass destruction from a bunch of beans?''
Ricin is a potentially lethal poison made from castor beans. Earlier this month, letters with grains of it were mailed from Memphis to President Obama, U.S. Sen. Roger Wicker, R-Miss., who is from Tupelo, and an 80-year-old local judge, Sadie Holland.
Terrorism experts have warned about ricin in aerosol form, but the FBI says this ricin was crude, as if the beans had been mixed in a blender. And Judge Holland's son says she sniffed the letter with no ill effects.
Investigators immediately focused on Curtis, because the letters contained phrases like ones he often used online, including, "I am KC and I approve this message.''
He also had a possible motive. Holland had sentenced him to six months in jail in 2004 for assaulting a musician in his band (who also happened to have been an assistant district attorney).
Things looked so bad for Curtis that his brother issued a statement that Kevin sometimes failed to take medications prescribed to control his psychiatric disorder. "I was trying to help him legally,'' the brother later told the local Northern Mississippi Daily Journal.
But when the FBI searched Curtis' home, they found no trace of castor beans or anything else to corroborate the circumstantial evidence. The telltale phrasing, Curtis' lawyers pointed out, could have been written by anyone familiar with his online rants.
Nor did Curtis seem a likely chemist. When questioned by the FBI, "I thought they said 'rice,' " Curtis told reporters. "I told them, 'I don't even eat rice.' "
Before they set him free, agents asked Curtis: Is there anyone who'd want to set you up?
Enter Dutschke. He and Curtis, who share an interest in music and tae kwon do, first met in the mid-2000s. Curtis saw in Dutschke, who was then putting out a newsletter, a publisher for his book about trafficking in harvested human organs. He even had a title: Missing Pieces.
When this didn't come to pass, the two began to squabble. There was a physical confrontation at a buffet restaurant, after which they took things online.
Curtis, convinced Dutschke was spying on him, says he set a trap. He claimed on his Facebook page that he was a member of Mensa.
Dutschke, a proud Mensan, took the bait, denouncing Curtis as a liar and threatening to sue.
This was in 2010, after which Dutschke has said he had nothing to do with Curtis.
If Dutschke sent the ricin letters — even before his arrest Saturday, he had said he's innocent — he could have been killing two birds with one stone.
In 2007, he ran unsuccessfully for the state Legislature against Judge Holland's son Steve, the incumbent. Dutschke liked to compare Holland to Boss Hogg, the corrupt county commissioner on The Dukes of HazzardTV series. Once, at an event where the candidates were speaking, Judge Holland got up on stage to rebuke Dutschke and demand that he apologize.
After Curtis was released and before he himself was arrested, Dutschke told the Associated Press that he had no quarrel with Sadie Holland: "Everybody loves Sadie, including me."
Last Tuesday, when Curtis was freed, the feds rousted Dutschke from bed and searched his house. They also sealed off a shabby commercial strip where his former martial arts studio was located; investigators in hazmat suits carried material to a mobile lab they'd set up outside.
The studio had closed after Dutschke was charged earlier this year with fondling several girls who'd been students there. He pleaded not guilty and was released on $25,000 bail. He'd previously been convicted of indecent exposure in a case involving a minor in his neighborhood.
FBI agents arrested Dutschke around 1 a.m. Saturday at his one-story brick house in a lower-middle-class neighborhood in Tupelo. FBI spokeswoman Deborah Madden said he was taken into custody "without incident.'' She referred questions about specific charges to federal prosecutors.
It's hard to say whose image has fared worse — the FBI's or Tupelo's, a city of 37,000 proud of its reputation for tolerance and a certain elegance.
When Curtis was released, the Clarion-Ledger of Jackson editorialized that "America got a good lesson in 'innocent until proven guilty.' "
"It's bad publicity,'' says Dick Guyton, a resident for all his 73 years and director of the Elvis Presley Birthplace and Museum. "And people don't think too much of Mississippi to begin with.''
Sid Salter, a veteran political analyst in the state, disagrees: "The notion that the ricin case 'reflects' on Mississippi at all is ludicrous. It's like suggesting that everyone who lives in rural Montana bears some sort of corporate guilt for the Unabomber.''
But Wilke, a native Mississippian, says "the woods here are full of colorful characters like them,'' referring to Curtis and Dutschke. "Maybe that's why we've produced so many great novelists.''
Contributing: The Associated Press; The (Jackson, Miss.)Clarion-Ledger