OK so I'd like to invite the pure free market types to explain how this gets fixed without any government, including no lawsuits. Because I keep hearing from free market types that 100% of phishing victims are ignorant and basically deserve what happens to them, if they can't learn that they're being duped they deserve to be duped, they somehow think wholesale loss of trust ends up being focused only on specific companies rather than entire technologies. And so on.
So how are these externalities dealt with where there is no such thing as insurance for this type of breach? There's no way to put the toothpaste (my private information in the form of answers to personal "security questions") back into the tube (only my brain or nearby sphere of influence).
And this goes along with IoT devices that aren't having their known exploits patched by their manufacturers. Similar problem different details.
So without broad laws that say this is wrong and here is a mechanism to attach a tangible cost to this information so a proper risk assessment is done, I imagine we keep seeing this happen with essentially no punishment beyond what Yahoo already is getting punished for.