Knuddels Chat App Fined €20k under GDPR Regulation For Storing Passwords in Plain Text

Knuddels chat app must pay the fine amount of 20,000 euros for violating its duty to ensure the security of the customer’s personal data.

In last July the company was attacked by hackers and they stole about 808,000 mail addresses and more than 1.8 million aliases and passwords. It is even worse if you use the same credentials on other websites. On the exposed 808,000 mailboxes the company verified only 320,000 mailboxes only

Knuddels published a breach notification and asked users to change their login credentials and notified incident to Baden-Württemberg data protection authority.

An unknown individual exposed user data of more than 8,000 members on Pastebin and more data on Mega cloud storage.

Baden-Wuerttemberg data protection commissioner Stefan Brink said the company should work with Cybersecurity agency and should improve the IT security reported Spiegel.

“Those who learn from harm and act transparently to improve data protection can emerge stronger as a company from a hacker attack.”

Holger Kujath, the managing director of Knuddels GmbH & Co. KG said the hack attack was a real test of stress for Knuddels, we immediately notified users and made improvement in IT security.

The General Data Protection Regulation (GDPR) applied on 25 May 2018, this new law applies to all companies that collect and process data belonging to the European Union (EU) citizens.

The company fined about four percent of the annual turnover achieved worldwide which is € 20 reported Spiegel.

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