Ashley Madison Hacking and the Ethics of Hacktivism
| Case Code: BECG161 Case Length: 11 Pages Period: 2015-2016 Pub Date: 2018 Teaching Note: Available |
Price: Rs.300 Organization: Ashley Madison Industry: Online Dating Website Countries: Canada Themes: Business Ethics, Corporate Governance |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In July 2015, a team of computer data hackers, who called themselves 'The Impact Team' (Impact), stole 30 million customer records of Ashley Madison containing highly compromising personal data. Seeking high moral ground, they threatened to publish the hacked data online if Avid Life Media Inc (ALM), the parent company of Ashley Madison, did not shutdown the website. According to them the site was a "prostitution/human trafficking website for rich men to pay for sex". ALM did not take any step towards the closure of the website but assured its customers that their data was safe. Eventually Impact made the data public which left horrified customers facing a future of ruined reputations and relationships.
Founded in 2007 by Noel Biderman (Biderman), Ashley Madison was an online dating website that promoted marital infidelity. Its slogan was "Life is short. Have an affair". The website was run by Toronto-based ALM which also owned other related hook-up sites such as Cougar Life and Established Men. As of July 2015, Ashley Madison website reportedly had a customer base of about 39 million members across 53 countries.
Following the hacking incident, Biderman stepped down as the CEO of ALM. The company was investigated by the Federal Trade Commission (FTC) for cheating as some reports found that Ashley Madison website had used computer programs, or bots, to impersonate women and engage male subscribers. It faced a number of lawsuits for failing to protect customers’ sensitive data. The company was also forced to revamp its management, strategy and to rebrand itself....
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