Case ID 16-1043
Published 2016
Industry INTERNET BASED SERVICES
Industry Code 401
Subject Operations management


Abstract The case focuses on Ashley Madison, particularly the security breach in 2015 rather than the Ashley Madison’s operation strategies. The specific sequences of breaching were given in a timeline. Ashley Madison was launched in 2001 and is currently the largest online social networking website with over 37 million users, also operating in 46 different countries. In 2015, Ashley Madison was hacked by a group of hackers call “Impact Team.” One month after the first initial warning message, they released 30 million members personal information such as email address, physical addresses, credit card information, sexual fantasy, etc. Soon Avid Media Life (Parent company of Ashley Madison) formed a joint investigation with law enforcement, and the cyber security service provider Cycura. Within a week after the first major data dump; Impact Team released two more data dump on both internal and external information. Biderman could have taken some action towards the manner months before Ashley Madison got hacked; yet he chooses to neglect the message and continue its business operation.
Pages 14
Teaching Note Yes