LivingSocial cyber attack affects millions of customers

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By Alistair Barr | Reuters – 1 hr 26 mins ago

SAN FRANCISCO (Reuters) - 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 unauthorized 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 United States, Canada, the U.K., Ireland, Australia, New Zealand, Malaysia, Southern Europe and Latin America.....