German chat platform Knuddels.de (“Cuddles”) has been fined €20,000 for storing user passwords in plain text (no hash at all? Come on, people, it’s 2018).
The data of Knuddels users was copied and published by malefactors in July. In September, someone emailed the company warning them that user data had been published at Pastebin (only 8,000 members affected) and Mega.nz (a much bigger breach). The company duly notified its users and the Baden-Württemberg data protection authority.
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Interesting stuff: this German region’s equivalent of the ICO applied a fine to this app for failing to hash passwords, describing them as personal information that was inadequately protected following their theft. That’s interesting because it sets a German, and to a lesser extend a European, precedent that plaintext passwords can be considered personal information and therefore allowing the (significant) weight of the GDPR to be applied to their misuse.
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