LivingSocial said that credit card and merchants' financial and banking information were not affected or accessed and passwords were encrypted. In an email the company said that it was working with coppers to investigate the hacking. 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. The attack comes as LivingSocial struggles to handle a decline in consumer and merchant demand for daily deals. The company raised $110 million from investors, including Amazon earlier this year, but was forced to make large concessions to get the new money.
Amazon invested $56 million in LivingSocial in the first quarter, according to a regulatory filing on Friday, which also revealed the company had a first-quarter operating loss of $44 million on revenue of $135 million. LivingSocial told customers in an email that they should log on to LivingSocial.com to create a new password for their accounts.