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Tesla Sues 2 Former Employees Over Insider Data Breach

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Whistleblower Leaks Included Information on 75,735 Current and Former Employees

Mathew J. Schwartz (euroinfosec) •
August 22, 2023    

Tesla Sues 2 Former Employees Over Insider Data Breach
Image: Tesla

Tesla says it is suing two former employees for perpetrating a May data breach that exposed personal information for 75,735 current and former employees.

See Also: Live Webinar | Unmasking Pegasus: Understand the Threat & Strengthen Your Digital Defense


The Austin, Texas-based electric car manufacturer began notifying affected individuals Friday, as part of its ongoing probe into a May data breach it blamed on “insider wrongdoing.”


The company said it had learned of the breach on May 10, when German business newspaper Handelsblatt informed Tesla that it had received 100 gigabytes of leaked data from a whistleblower that included employee information, including Social Security numbers.


Tesla said Handelsblatt had told the carmaker it would not – and legally could not – publish the employee information. On May 25, the paper published a report based on the leaked information, which included internal communications revealing over 3,000 customer complaints concerning Autopilot that the company appeared to have tried to minimize.


The Handelsblatt report also said Tesla was failing to adequately protect access to customer and employee data, The Guardian reported. Handelsblatt quoted a Tesla attorney blaming the 100 gigabyte data leak on a “disgruntled former employee” who worked as a service technician, according to The Guardian.

The carmaker’s subsequent probe of the breach “revealed that two former Tesla employees misappropriated the information in violation of Tesla’s IT security and data protection policies and shared it with the media outlet,” according to the data breach notification sent to affected individuals from Tesla Data Privacy Officer Steven Elentukh.

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Exposed information included each individual’s name and contact information, including email addresses and phone numbers as well as Social Security numbers.


After the breach came to light, “Tesla immediately took steps to contain the incident, understand the scope, and protect your information,” in part by identifying the two employees and filing lawsuits against them, the notification says.


“These lawsuits resulted in the seizure of the former employees’ electronic devices that were believed to have contained the Tesla information,” the notification reads. “Tesla also obtained court orders that prohibit the former employees from further use, access or dissemination of the data, subject to criminal penalties.”


Tesla said it is also working with law enforcement agencies. Whether or not the former employees might face criminal charges remains unclear.


Tesla Faces Multiple US Probes


The leaks occurred as Tesla is facing numerous government investigations, and many of them focus on the driver-assistance features the company builds into its vehicles as well as how it has marketed that functionality to drivers.


In October 2022, the U.S. Department of Justice announced the launch of a criminal investigation into the automaker triggered by 16 Tesla cars being involved in crashes – some fatal – with stationary emergency vehicles. All of the crashes apparently occurred when driver-assistance features had been enabled at least 30 seconds or more before the crash, Reuters reported.


In a February filing with the Securities and Exchange Commission, Tesla said it had received a request from Justice pertaining to information about its Autopilot as well as full self-driving features. The latter is a beta option available as a $15,000 add-on.


“To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred,” Tesla said in its filing.


America’s National Highway Traffic Safety Administration has also been probing Tesla. One of its multiple investigations was launched in 2021 and centers on the Autopilot driver-assistance feature present in 830,000 Tesla vehicles. In June 2022, the NHTSA expanded its probe into an engineering analysis, which could lead the regulator to require that vehicles be recalled.





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    Boosting Cybersecurity for Small Businesses: Effective Strategies for Task Automation

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    Implementing Patch Management Systems

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    Enabling Multi-Factor Authentication (MFA)

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    Automating Security Auditing and Compliance

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    Deploying Automated Data Backups and Recovery

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    Educating Employees with Security Awareness Training

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    As cyber threats continue to evolve, small businesses must adopt proactive cybersecurity measures to protect their sensitive data and operations. By embracing automation, small businesses can effectively enhance their cyber defense capabilities. From automated threat detection and patch management to multi-factor authentication and data backups, these automation strategies provide small businesses with robust security solutions despite limited resources. Small businesses can mitigate risks, safeguard their digital assets, and focus on growth and innovation by automating cybersecurity tasks.

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    The Vital Role of Ethical Hackers in Cybersecurity

    The role of an ethical hacker is vital within the cybersecurity industry. Armed with a wealth of knowledge and experience, these experts embark on a noble quest: to uncover vulnerabilities and safeguard the integrity of digital systems. Their mission? To perform risk assessments and test the foundations of security in organizations.

    To achieve their goal, ethical hackers immerse themselves in the expanse of security breaches, exploits, and vulnerability scenarios. They leave no stone unturned. Their goal is to protect organizations from malicious attacks, ensuring that the digital fortress remains untouchable.

    Don't underestimate the importance of ethical hacking. As the world becomes increasingly interconnected, cybersecurity has never been more pressing. According to a report by Emergen Research, the cybersecurity industry is expected to expand at a compound annual growth rate (CAGR) of 12.0% to 13.4% from 2022 to 2030. This surge in demand reflects the critical importance of ethical hackers in fortifying digital infrastructure against the relentless onslaught of cyber threats.

    Embracing the Journey: Continuous Learning and Certification for Ethical Hackers

    Becoming an ethical hacker requires diverse skills and knowledge. Understanding the types of hackers is crucial, as it provides insights into how they operate. Armed with this knowledge, ethical hackers delve into cutting-edge tools and techniques. They leverage their skills to identify vulnerabilities and devise countermeasures.

    The responsibilities of an ethical hacker transcend merely identifying weaknesses. They also recommend solutions and implement robust security measures. Their expertise helps organizations fortify their defenses, minimize breaches, and protect sensitive data from falling into the wrong hands.

    The Tools of Ethical Hacking

    Curious about the tools an ethical hacker uses? They have access to a diverse range of tools. These tools allow them to probe and analyze digital systems, uncover weaknesses, and assess the resilience of security measures. While the specific tools vary based on the objectives and preferences of individual ethical hackers, there are several standard tools they employ. 

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    Another essential tool in the ethical hacker's arsenal is Metasploit. Metasploit is an open-source framework that facilitates penetration testing and vulnerability assessment. It offers a wide range of exploits, payloads, and auxiliary modules, empowering ethical hackers to simulate real-world attack scenarios. Employing Metasploit's extensive collection of exploit codes, ethical hackers can uncover weaknesses, gain unauthorized access, and assess the system's defenses against potential threats.

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    References:

    "Cybersecurity Market, By Component (Hardware, Solution, Service), By Security Type, By Solution, By Application (IT & Telecom, Retail, BFSI, Healthcare, Defense & Government, Manufacturing, Energy, Others), By Region Forecast to 2032". Www.Emergenresearch.Com, 2023, https://www.emergenresearch.com/industry-report/cyber-security-market. Accessed 25 May 2023.

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    Cyber Insurance: An Essential Safety Net

    Like any insurance, cyber insurance covers financial losses related to cyber incidents. This can include costs associated with data recovery, notification of affected parties, legal fees, public relations efforts, business interruption, and even extortion payments demanded by hackers. In essence, cyber insurance is designed to help a company recover from a cyber attack by mitigating the financial impact. It provides an essential safety net that can make the difference between a company going out of business and staying afloat after a cyber-attack.

    Coverage Tailored to Your Business

    One of the key advantages of cyber insurance is that it can be tailored to fit the specific needs and risk profile of your business. Different businesses have different cyber risks. For example, a healthcare provider may need coverage for patient data breaches, while a retail business might require protection against credit card fraud. Cyber insurance policies can be customized to provide the coverage your business needs most.

    The Rising Importance of Cyber Insurance

    Cyber insurance is growing in importance as businesses become more digital and data-driven. It's not just about whether your business will experience a cyber-attack, but when it will happen. Data privacy laws are becoming more stringent, which means businesses can face hefty fines for failing to adequately protect customer data. Cyber liability insurance can provide coverage for these regulatory fines.

    Cyber Insurance - An Investment Worth Making

    Investing in cyber insurance is like putting on a seatbelt while driving. It doesn't prevent an accident, but it can significantly mitigate the damage if one occurs. Cyber insurance is an essential part of a comprehensive risk management strategy, providing financial protection and peace of mind in a digital age fraught with cyber threats. Regardless of your business size or industry, having cyber insurance can help you navigate the aftermath of a cyber-attack by protecting your financial resources.

    PSL’s Easy Guide to Understanding Cybersecurity

    The world of cybersecurity can often feel like a maze of technobabble and obscure acronyms. Yet in an era where our lives increasingly depend on digital infrastructure, it's important to have a basic understanding of the terminology involved. Learning about cybersecurity can help you avoid common mistakes and limit the chance of becoming a victim of these crimes.

    Here is an overview of common cybersecurity terms.

    1) Cybersecurity

    Let's start with the basics. Cybersecurity is simply the defense against digital attacks that target computers, mobile devices, networks, and servers. These attacks are typically aimed at accessing, changing, or destroying sensitive information, extorting money from users, or interrupting normal business processes.

    2) Malware

    Malware is any malicious software that can damage or infiltrate computers without the user's consent.

    Here are the most well-known types of malware.

    Virus

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    Worm

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    Trojan

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    Ransomware

    This type of malware encrypts the user's files and demands payment to unlock them.

    Spyware

    Spyware is malware that's specifically designed to spy on user activity without their knowledge.

    3) Phishing

    Phishing is a common attack that tries to gain personal information by using deceptive emails and websites. The attacker, masquerading as a trustworthy entity, uses a variety of strategies to trick the victim into opening an instant message, email, or text message.

    4) Firewall

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    5) VPN (Virtual Private Network)

    A VPN masks your internet protocol (IP) address to make your online actions nearly untraceable. VPN services establish encrypted connections to provide much greater privacy while using the internet.

    6) Encryption

    Encryption converts data into a code to prevent unauthorized access. When data is encrypted, it appears as gibberish unless you have the decryption key to convert it back to its original form.

    7) Two-Factor Authentication (2FA)

    2FA is a common security process in which users must provide two different authentication factors to gain access to an account. For example, in addition to a password, you might also need to enter a code sent to your phone.

    8) Darknet/Dark Web

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    9) Data Breach

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    10) Botnet

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    Closing Thoughts

    Understanding cybersecurity is not just for the tech-savvy; it's for everyone. We are all potential targets for cyber threats, and comprehension of basic cybersecurity terminology can make a significant difference in safeguarding ourselves and our digital assets.

    Employing cybersecurity measures also helps to keep your digital data safe. This might include using a VPN, enabling two-factor authentication, or simply being wary of suspicious emails to prevent phishing attacks.

    Ultimately, it's not necessary for everyone to be a cybersecurity expert, but a basic understanding of the key terms can be an empowering first step in better securing your digital life. This newfound knowledge can provide you the confidence to navigate the online world with more safety and assurance.