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Yahoo confirms huge data breach affecting 500 million accounts

If your Yahoo account is one of the 500 million breached accounts, you can expect to get a notification from Yahoo soon about it. The hack and subsequent data theft took place in late 2014; the company, per its investigation, says it believes a state-sponsored actor was responsible. A report has the tech giant is expected to disclose details of a hack that has affected some 200 million Yahoo users. At the time, Yahoo said it was "investigating" this claim but did not confirm its legitimacy. "It's as bad as that", said one source. The verbiage used here is significant as data breaches happen all the time but "massive data breach sounds" like it could be pretty severe and widespread.

Despite Recode's report, shares of Yahoo were trading higher by more than 1.5 percent Thursday morning and shares of Verizon were higher by almost 0.50 percent.

Sources close to the situation said that the breach was serious enough that government investigations and legal action are likely, according to Recode.

It was not clear how this disclosure might affect Yahoo's plan to sell its email service and other core internet properties to Verizon Communications Inc (VZ.N).

More news: Barack Obama Reaffirms America's 'Unbreakable' Commitment to Israel

It was announced in July Verizon had reached an agreement to purchase Yahoo for $4.83 billion, strengthening the mobile carrier's internet business and giving it access to Yahoo's trove of advertising tools. This breach could end up scaring off shareholders and could lower the value of the acquisition deal, which has yet to be completed.

However the U.S. technology firm could make an embarrassing u-turn this week and call for users to change passwords associated with their Yahoo account, one source said.

Reuters reports that such attacks consist of cybercriminals using automated programs to cycle through stolen user ID's and passwords and using them to log into personal accounts such as banks, travel firms and online gaming firms.

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