What is the Ashley Madison fraud scandal about?

The Ashley Madison fraud scandal, which broke in July 2015, centers around a data breach of Avid Life Media's online dating service, Ashley Madison, which promoted extramarital affairs. The breach resulted in the personal information of millions of users being exposed, including names, email addresses, and payment details. Hackers identifying themselves as "The Impact Team" claimed responsibility for the attack and threatened to release user data unless the site was shut down. When Avid Life Media did not comply with the demands, hackers published the sensitive data. This led to widespread privacy concerns, public embarrassment for those exposed, and even led to reports of blackmail and divorce proceedings. In the aftermath, it was also revealed that Ashley Madison used fake female profiles to lure male customers into spending money on the site, resulting in accusations of deception aside from the significant security failings.