Zappos.com a subsidiary company of Amazon whose internal network was hacked into January 15, 2012 by an undetermined number of crackers. The result of this attack was the loss of roughly 24 million customers data which is about one in ten people in the United States. The data that was lost is customer included the names, e-mail addresses, last four digits of credit card numbers, encrypted passwords, and shipping addresses.
After the attack occurred Zappos.com told customers and made it public news that they had been breached. This was all in order to make it known to customers that they needed to change their passwords as well as to inform them about good security practices for the immediate future in hope that they might not fall for phishing schemes. Then to avoid an overload on their phone systems they shut down their customer service line and told customers to e-mail them instead with questions. Which many outside experts agree was a good move because Zappos.com does not have the necessary resources to handle the calls from even a small fraction of the customers affected.
In the wake of this Amazon and Zappos.com are being sued by an increasing number of angry customers who feel that they have been violated. However, the Zappos security team was able to stop the attack while it was occurring and keep safe customers social security numbers as well as their full credit-card number. This is important because the only similar case in which the courts ruled in favor of the customers was the 1st circuit decision in the Hannaford case. There is though a large difference in these cases the Hannaford case was won by the customers because their credit-card numbers were stolen. This was not the case in the Zappos.com breach. Not to mention there has not been any cases of identity theft yet because of this breach and no know cases of fraud yet. In short the cases might be dropped by the court.
Unfortunately for Zappos.com and Amazon have received damage to their reputation. Then there is the fact that even though the information stolen is not the most valuable information it still is a goldmine for social engineers. Plus the cracker is probably sitting fat, and happy while hard working Americans are being taken advantage of.