Yahoo confirms more than one billion accounts compromised in massive data breach

Reflecting its diminished stature, Yahoo was not invited to the summit, according to people familiar with the meeting.

Regarding the deal with Verizon, Yahoo said in a statement, "We are confident in Yahoo's value and we continue to work towards integration with Verizon". The Internet company is already the subject of class-action lawsuits resulting from the breach it announced in September.

Verizon said, "we will review the impact of this new development before reaching any final conclusions".

While Lord can now confirm this was true, and at a massive scale, worryingly he wrote Wednesday: "We have not been able to identify the intrusion associated with this theft".

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No court in DE, where Yahoo is incorporated, has ever found that a material adverse effect has occurred that would allow companies to terminate a merger agreement.

Yahoo also said Wednesday that it believes hackers responsible for the previous breach had also accessed the company's proprietary code to learn how to forge "cookies" that would allow hackers to access an account without a password.

The news caused a late dip in Yahoo's stock price, sending it down as much as 2.7 percent in after-hours trading. Yahoo closed down 6.1% at $38.41.

Just a few months after announcing that in 2014 500 million accounts were hacked, Yahoo Inc. is at it again, disclosing this week that in 2013 one billion accounts were hacked in the largest data breach recorded in history.

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The company added that some of its partners were affected. "Payment card data and bank account information are not stored in the system the company believes was affected".

The White House said on Thursday the U.S. Federal Bureau of Investigation was probing the breach. Ironically, Yahoo bought Tumblr in 2013, but the image-blogging startup had a separate and weaker password encryption system than the one we now know was stolen from Yahoo around the same time. At an unlikely worst-case scenario, it's 1.5 billion.

Warner, who will become the top Democrat on the Senate Intelligence Committee next year, described the hacks as "deeply troubling".

The company, which is being acquired by Verizon for about $4.8 billion, said an unauthorized third party had stolen the data in the latest breach and that it was working closely with law enforcement.

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Hours before it announced the breach on Wednesday, executives with Google, Facebook and other large US technology companies met with President-elect Donald Trump in NY. There are many ways stolen data like this can be used to affect user accounts on other networks: e-mail addresses could be targeted for spear-fishing attacks (a form or social engineering attack where hackers try to fool you into clicking on a link that downloads malware onto your device); the encrypted but apparently not hashed security questions and answers (some were not encrypted at all) could be used to attempt password resets; and finally the passwords could potentially be unecrypted. Considering there are about three billion internet users total, a billion accounts is sobering, as is the fact that it took this long to discover and disclose.

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