Apple sued for $5M for not recovering data after iPhone theft

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A Minnesota man is suing Apple for failing to do enough after having his iPhone stolen, demanding access to 2 terabytes of data and at least $5 million in damages.

Person holding smartphone displaying advanced data protection information on screen, with finger pointing at the text, highlighting the importance of encrypting data for security.
Advanced Data Protection is very secure, just don't lose your Recovery Key



The loss of a smartphone can be devastating to a person, especially when it's the center of their digital existence. However, while there are ways to recover data, such as that stored on iCloud, sometimes the remedies that are available are not enough.

In a filing at the U.S. District Court for the Northern District of California in January, surfaced by the Washington Post in April, Michael Mathews of Minnesota is suing Apple for access to his data and compensation.

After his iPhone was stolen by pickpockets in Scottsdale, Arizona, Mathews claims he lost access to his photos, music, tax returns, and work-related research. As a consequence, his tech consulting firm apparently had to shut down.

In the suit, Mathews wants access to approximately 2 terabytes of data that forms his "entire digital life, including that of his family," and at least $5 million in damages.

Unrecoverable Recovery Key



Mathews' problems all focus around the Recovery Key, a feature of Advanced Data Protection which is used to reset the password and recover the account. It is a 28-digit key that Apple recommends users store safely for future use.

However, in this case, it's apparently being used by the thief. If the thief can gain access to the iPhone, such as by discovering the passcode to unlock it, they can then change the password to the Apple ID to make it harder to recover.

In some cases, a thief could also enable ADP and create the Recovery Key. It's also possible for a thief to change an already existing Recovery Key, if they know the passcode and can use it.

The upshot for Mathews is that the account is no longer recoverable in such cases.

Without ADP, it is possible to recover accounts, in part because of the way Apple deals with encrypted data stored on its servers. Apple itself has a copy of encryption keys between the user's device and iCloud, and they can be recovered easily, just not under ADP.

While under ADP the Recovery Key is needed, the suit insists that Apple is still capable of doing something about the situation. Mathews' lawyer K. Jon Breyer says it is "indefensible" for Apple to hold onto the data "they don't own."

That suit has now entered a discovery phase, which can take between six and eight moths to complete.

Apple didn't comment about the case specifically, but told the report it sympathizes with victims of crime. The statement adds "We take all attacks on our users very seriously, no matter who rare."



Read on AppleInsider

Comments

  • Reply 1 of 20
    Xedxed Posts: 3,140member
    So this guy had ADP enabled but probably also used a PIN instead of a complex passcode for his device?

    Personally, I waited a long time before enabling ADP because of the very clear warnings Apple gives before enabling it.



    While under ADP the Recovery Key is needed, the suit insists that Apple is still capable of doing something about the situation. Mathews' lawyer K. Jon Breyer says it is "indefensible" for Apple to hold onto the data "they don't own."

    We'd hate to do that so we'll go ahead and delete that encrypted file off our servers by deleting your iCloud account. Happy?
    edited April 21
    dewmekillroyljbyrne
     3Likes 0Dislikes 0Informatives
  • Reply 2 of 20
    DAalsethdaalseth Posts: 3,285member
    Ok but according to the article he ran a ‘Tech Consulting Firm’. 
    If so then he should have known better. He should have understood how to manage this. But from the sound of this all of his critical data was on iCloud. Were there no backups? Despite it being made very clear that iCloud is for file access and is NOT a backup and archiving service? 
    This case should be thrown out. If it isn’t, a good lawyer could dismantle him and his competency on the stand. 
    XeddewmetokyojimuOferappleinsideruserkillroyMplsPbaconstangAnObserverljbyrne
     13Likes 0Dislikes 0Informatives
  • Reply 3 of 20
    Xedxed Posts: 3,140member
    DAalseth said:
    Ok but according to the article he ran a ‘Tech Consulting Firm’. 
    If so then he should have known better. He should have understood how to manage this. But from the sound of this all of his critical data was on iCloud. Were there no backups? Despite it being made very clear that iCloud is for file access and is NOT a backup and archiving service? 
    This case should be thrown out. If it isn’t, a good lawyer could dismantle him and his competency on the stand. 
    I didn't even pick up on that. That makes this case exponentially more stupid.
    Ofer
     1Like 0Dislikes 0Informatives
  • Reply 4 of 20
    dewmedewme Posts: 6,006member
    I totally agree with the previous comments. This is a very costly lesson for this guy. He can try to convince himself into believing that Apple has a "master key" to everyone's encrypted data, but that is simply not the case with ADP. The only thing Apple can do here is give him his encrypted files and let him take a crack at decrypting them. Good luck with that. Perhaps when quantum computing reaches its full potential in a decade or two he may have a shot at getting his data back.

    This guy's best hope is that the thief was tech savvy enough to get the decrypted files and will offer a ransom to get them back. But in all likelihood the phone's been wiped and sold or broken up for parts.
    OferFileMakerFeller
     2Likes 0Dislikes 0Informatives
  • Reply 5 of 20
    This should be a lesson to anyone who uses their phone for everything. DON'T DO IT.
    Some light-fingered larry could nick it and take you and your life away. Money? Gone. Business? Gone. 

    I don't do email or banking on my phone. That degree of separation is to my mind essential.
    williamlondonappleinsideruserjibbaconstangdewmeljbyrne
     2Likes 4Dislikes 0Informatives
  • Reply 6 of 20
    mike1mike1 Posts: 3,479member
    "That suit has now entered a discovery phase, which can take between six and eight moths to complete."

     If the attorneys hire additional moths, can this be completed sooner? :D

    williamlondonFileMakerFellerfastasleepsphericentropys
     4Likes 1Dislike 0Informatives
  • Reply 7 of 20
    boboliciousbobolicious Posts: 1,194member
    I have always tried to use local sync and backups vs anything iCloud on principle...
    Unfortunately local sync issues with contacts and calendars in macOS have seemed ongoing.
    Have TM backups of individual emails also become more onerous for recovery...?


    edited April 21
    williamlondon
     0Likes 1Dislike 0Informatives
  • Reply 8 of 20
    damonfdamonf Posts: 233member
    Xed said:
    So this guy had ADP enabled but probably also used a PIN instead of a complex passcode for his device?

    Personally, I waited a long time before enabling ADP because of the very clear warnings Apple gives before enabling it.



    While under ADP the Recovery Key is needed, the suit insists that Apple is still capable of doing something about the situation. Mathews' lawyer K. Jon Breyer says it is "indefensible" for Apple to hold onto the data "they don't own."

    We'd hate to do that so we'll go ahead and delete that encrypted file off our servers by deleting your iCloud account. Happy?
    Whereas I disagree with the suit that Apple can do anything after the fact for this user, it is rather dumb that ADP exists to protect iCloud data tied to an Apple Account (formerly Apple ID), yet in the enabling/disabling process for ADP there is never a prompt from the Settings app to enter one's Apple Account password to proceed.  All it takes is snatching someone's unlocked iPhone out of their hands and running off and quickly enabling ADP.  The ability to enable it without so much as having to enter one's Apple Account password despite the fact that it can lock one out of iCloud data is preposterous.  It is too easy to enable and needs some additional safeguards to prevent abuse.
    muthuk_vanalingamwilliamlondonWesley_Hilliard
     0Likes 2Dislikes 1Informative
  • Reply 9 of 20
    Sounds like a scam to me. Did he really lose his phone or it’s all part of an extortion scheme. Sounds very similar to insurance scam to me.
    killroyappples
     2Likes 0Dislikes 0Informatives
  • Reply 10 of 20
    Xedxed Posts: 3,140member
    damonf said:
    Xed said:
    So this guy had ADP enabled but probably also used a PIN instead of a complex passcode for his device?

    Personally, I waited a long time before enabling ADP because of the very clear warnings Apple gives before enabling it.



    While under ADP the Recovery Key is needed, the suit insists that Apple is still capable of doing something about the situation. Mathews' lawyer K. Jon Breyer says it is "indefensible" for Apple to hold onto the data "they don't own."

    We'd hate to do that so we'll go ahead and delete that encrypted file off our servers by deleting your iCloud account. Happy?
    Whereas I disagree with the suit that Apple can do anything after the fact for this user, it is rather dumb that ADP exists to protect iCloud data tied to an Apple Account (formerly Apple ID), yet in the enabling/disabling process for ADP there is never a prompt from the Settings app to enter one's Apple Account password to proceed.  All it takes is snatching someone's unlocked iPhone out of their hands and running off and quickly enabling ADP.  The ability to enable it without so much as having to enter one's Apple Account password despite the fact that it can lock one out of iCloud data is preposterous.  It is too easy to enable and needs some additional safeguards to prevent abuse.
    Huh! I just assumed it would require your iCloud password, the way turning off Find My requires it for a device.
     0Likes 0Dislikes 0Informatives
  • Reply 11 of 20
    Wesley_Hilliardwesley_hilliard Posts: 467member, administrator, moderator, editor
    damonf said:
    Xed said:
    So this guy had ADP enabled but probably also used a PIN instead of a complex passcode for his device?

    Personally, I waited a long time before enabling ADP because of the very clear warnings Apple gives before enabling it.



    While under ADP the Recovery Key is needed, the suit insists that Apple is still capable of doing something about the situation. Mathews' lawyer K. Jon Breyer says it is "indefensible" for Apple to hold onto the data "they don't own."

    We'd hate to do that so we'll go ahead and delete that encrypted file off our servers by deleting your iCloud account. Happy?
    Whereas I disagree with the suit that Apple can do anything after the fact for this user, it is rather dumb that ADP exists to protect iCloud data tied to an Apple Account (formerly Apple ID), yet in the enabling/disabling process for ADP there is never a prompt from the Settings app to enter one's Apple Account password to proceed.  All it takes is snatching someone's unlocked iPhone out of their hands and running off and quickly enabling ADP.  The ability to enable it without so much as having to enter one's Apple Account password despite the fact that it can lock one out of iCloud data is preposterous.  It is too easy to enable and needs some additional safeguards to prevent abuse.
    Nope, not how this works. You have to have the user's device passcode.

    And how does enabling ADP help a thief? Especially if the account holder can just use one of their account recovery features to gain control of the account back. 

    I do wonder why Apple doesn't have the ADP toggle behind its Stolen Device Protection feature. Perhaps an oversight.
    edited April 21
    appleinsideruserkillroywilliamlondonbaconstangdewmeljbyrne
     5Likes 0Dislikes 1Informative
  • Reply 12 of 20
    killroykillroy Posts: 294member
    DAalseth said:
    Ok but according to the article he ran a ‘Tech Consulting Firm’. 
    If so then he should have known better. He should have understood how to manage this. But from the sound of this all of his critical data was on iCloud. Were there no backups? Despite it being made very clear that iCloud is for file access and is NOT a backup and archiving service? 
    This case should be thrown out. If it isn’t, a good lawyer could dismantle him and his competency on the stand. 
    This kind of boggles the mind doesn't it.
    williamlondon
     0Likes 1Dislike 0Informatives
  • Reply 13 of 20
    Things aren't adding up. A "tech expert" places his $5M business and personal life on one device without a means of recovering the date? What if the phone SSD fails, or he leaves it somewhere after a wild night of carousing? MMMM, fishy.
    FileMakerFellerbaconstangdewmeAnObserverappples
     5Likes 0Dislikes 0Informatives
  • Reply 14 of 20
    musomuso Posts: 34member
    Huh?

    I have my phone backed up to my Mac.  I have my Mac (including my local iCloud Drive folder) backed up to an external drive and an online service.  It's not that difficult.

    And I don't even run a "tech consulting firm" lol.


    baconstangfastasleepmaltz
     3Likes 0Dislikes 0Informatives
  • Reply 15 of 20
    Xedxed Posts: 3,140member
    muso said:
    Huh?

    I have my phone backed up to my Mac.  I have my Mac (including my local iCloud Drive folder) backed up to an external drive and an online service.  It's not that difficult.

    And I don't even run a "tech consulting firm" lol.
    Let's see. I have my iPhone backing up to iCloud, with my Mac backing up Desktop, Documents, and other folders to iCloud, then I back up my iPhone to my Mac every month (which is also one I limit my iCloud storage needs by doing a manual photo sync to the Mac and organizing photos each month so it's not overwhelming). Also on my Mac I use Dropbox for personal stuff, especially shared with a significant  other, and OneDrive for work (because MS already includes it but I hate it), and then use Time Machine to back up to a RAID NAS which is also backing up Dropbox and One Drive just to make sure there's redundancy.
    edited April 21
    dewme
     1Like 0Dislikes 0Informatives
  • Reply 16 of 20
    dewmedewme Posts: 6,006member
    Xed said:
    muso said:
    Huh?

    I have my phone backed up to my Mac.  I have my Mac (including my local iCloud Drive folder) backed up to an external drive and an online service.  It's not that difficult.

    And I don't even run a "tech consulting firm" lol.
    Let's see. I have my iPhone backing up to iCloud, with my Mac backing up Desktop, Documents, and other folders to iCloud, then I back up my iPhone to my Mac every month (which is also one I limit my iCloud storage needs by doing a manual photo sync to the Mac and organizing photos each month so it's not overwhelming). Also on my Mac I use Dropbox for personal stuff, especially shared with a significant  other, and OneDrive for work (because MS already includes it but I hate it), and then use Time Machine to back up to a RAID NAS which is also backing up Dropbox and One Drive just to make sure there's redundancy.
    Xed said:
    muso said:
    Huh?

    I have my phone backed up to my Mac.  I have my Mac (including my local iCloud Drive folder) backed up to an external drive and an online service.  It's not that difficult.

    And I don't even run a "tech consulting firm" lol.
    Let's see. I have my iPhone backing up to iCloud, with my Mac backing up Desktop, Documents, and other folders to iCloud, then I back up my iPhone to my Mac every month (which is also one I limit my iCloud storage needs by doing a manual photo sync to the Mac and organizing photos each month so it's not overwhelming). Also on my Mac I use Dropbox for personal stuff, especially shared with a significant  other, and OneDrive for work (because MS already includes it but I hate it), and then use Time Machine to back up to a RAID NAS which is also backing up Dropbox and One Drive just to make sure there's redundancy.
    It sounds like you have a good strategy for your iPhone configuration but you should never treat iCloud like a backup mechanism. It’s a way to have a synchronized working set of data across several devices. If you delete a file from an iCloud synced folder it gets deleted everywhere. 

    If you backup your iCloud data to Time Machine and Carbon Copy Cloner then you have two backup copies of your data, plus the working copy in iCloud. That is good, with one caveat: if you enable storage optimization the for the files that are referenced in your local iCloud working set but not downloaded , they will not be present in your Time Machine or Carbon Copy Cloner backups. 

    In your case you are keeping your photos stored locally to download to your phone which means they will be backed up. Having an off-premise backup using Dropbox, Backblaze, iDrive, etc., makes a lot of sense. Sounds like a good process. 


    AnObserver
     1Like 0Dislikes 0Informatives
  • Reply 17 of 20
    SiTimesitime Posts: 70member
    Was it the owner who enabled ADP (before the iPhone was stolen, of course)? Or was it the thief who enabled ADP after they stole the iPhone?
    maltz
     1Like 0Dislikes 0Informatives
  • Reply 18 of 20
    When he loses the case, charge the guy the fees for apple's lawyers and reputational damages. 
    Enjoy the learning from your experience. No extra charge, sir. Glad you're happy :) 
     0Likes 0Dislikes 0Informatives
  • Reply 19 of 20
    SiTimesitime Posts: 70member
    Answering my own question from a day ago:

    Allegedly, it seems it was the thief who set the recovery key for the ADP.
    edited April 22
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  • Reply 20 of 20
    maltzmaltz Posts: 537member
    SiTime said:
    Was it the owner who enabled ADP (before the iPhone was stolen, of course)? Or was it the thief who enabled ADP after they stole the iPhone?

    This was my question - especially if it's possible to enable or disable ADP without a password if you have physical control of an unlocked device.  Because, holy crap, that would be bad.  Not just from thieves, but there are other cases where people share their passcode with friends or family (wisely or not) who might get upset with them, and now they can completely hijack their Apple ID?  Surely that isn't the case?
     0Likes 0Dislikes 0Informatives
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