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chicot60
04-27-2011, 10:52 AM
By Christopher Williams, Technology Correspondent

The breach of the PlayStation Network by hackers already stands as one of the most significant security failings in internet history and raises serious questions for Sony.


Although the firm is careful to say there is no evidence credit card data was stolen, it equally admits that it “cannot rule out the possibility”.


Even the possibility that more the 70 million PlayStation owners’ financial details are now in the hands of cyber criminals elevates the incident to the most serious level. The huge volume of other personal data that Sony says was taken is bad enough.


"This is certainly among the biggest data breaches of its type, both in terms of the number of people affected globally and the negative publicity it is likely to attract," said George Campbell, a technology lawyer at McGrigors.


When Sony first admitted there had been an “external intrusion” of the PlayStation Network on April 23, speculation centred on claims that the culprits may have been Anonymous, the online activist collective best known for its denial-of-service attacks in support of WikiLeaks.


Anonymous had criticised Sony for its legal attack on George Hotz, a 21-year-old American who broke digital locks on the PlayStation to allow it to run unauthorised software. The activists, so the speculation went, must have attacked the PlayStation Network to teach Sony a lesson.



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Such conspiratorial claims now seem outlandish. Security experts agree it is much more likely that Sony was targeted by professional cyber criminals, for whom stolen personal data – especially credit card data – is stock in trade.

Online service providers are under constant treat from these criminal hackers. Their attacks on big firms like Sony virtually always fail, but the potential rewards are high enough to keep looking for a way in.

Though estimates of the size of this global black industry vary wildly, all agree it is measured in the tens of billions of dollars and headquartered in eastern Europe.

Sony has not released any technical details of how the PlayStation Network was breached and, if previous breaches at other firms are anything to go by, will only do so if required by a court. Fear of revealing information that could be useful to future attackers is understandably endemic in computer security departments.

But the fact will remain that any system connected to the internet is a potential target for cyber criminals, and a system to which more than 70 million people have submitted credit card data is one of the juiciest.

Sony faces serious questions though about its security practices. Even if it transpires no credit card data was stolen, password files were, and for years experts have called for them be strongly encrypted so that even if they are taken they will be useless.

If nothing else, this incident will go down in internet history as the first major hacking of a consumer “cloud” service. Such services, which store and serve up data and software centrally rather than on home computers and are predicted to become the norm, but Sony’s experience shows they bring major risks for users and providers alike.


http://www.telegraph.co.uk/technology/sony/8476241/PlayStation-hack-serious-questions-for-Sony.html

MeSat_FTA
04-30-2011, 04:22 AM
I heard that if all the customers ask for new credit cards, that will cost the credit card companies millions and it could be into the hundreds of millions.

Blaster
05-04-2011, 08:25 PM
This is going to put a serious dent in Sony's overall value and reputation. There are also two class action lawsuits on the way.

kenkell1
05-04-2011, 09:10 PM
This is going to put a serious dent in Sony's overall value and reputation. There are also two class action lawsuits on the way.

Sony deserves to go belly up for being such a bunch of scammer. The PS3 classaction lawsuit is still in the works because the console is garbage.

MeSat_FTA
05-05-2011, 04:18 AM
The console is great. The features were great until they started to remove some. Once that started, they p. o. a lot of smart people. Now they are in deeper than they can imagine.

The Canadian Privacy commissionaire may be going after Sony as well.

========= C/P

Data breach fines sought by privacy watchdog
Jennifer Stoddart 'disappointed' by lack of notification from SonyCanada's privacy commissioner wants the power to impose hefty fines on companies that fail to adequately protect Canadians' personal information from preventable data breaches.

"I am deeply troubled by the large number of major breaches we are seeing," Jennifer Stoddart said Wednesday at the Canada 3.0 digital media conference in Stratford, Ont.

She has concluded that imposing "significant, attention-getting fines" is "the only way" to get some corporations to "pay adequate attention to their privacy obligations," she said.

The privacy commissioner can investigate complaints that a company has violated Canadian privacy laws, but does not have enforcement powers. Instead, she must ask the Federal Court to take action.

Stoddart said her counterparts in other countries such as the United Kingdom, France and Spain have already imposed fines of up to $157,000 after recent data breaches.

Writing to Industry Canada and recommending similar powers for her office is one of her top priorities after Monday's election, she added.

Fines are 'the only way' to get some corporations to pay adequate attention to their privacy obligations, Privacy Commissioner Jennifer Stoddart said Wednesday at the Canada 3.0 digital media conference in Stratford, Ont.

The privacy commissioner can investigate complaints that a company has violated Canadian privacy laws, but does not have enforcement powers. Instead, she must ask the Federal Court to take action.

Stoddart said her counterparts in other countries such as the United Kingdom, France and Spain have already imposed fines of up to $157,000 after recent data breaches.

Writing to Industry Canada and recommending similar powers for her office is one of her top priorities after Monday's election, she added.

Stoddart's statement comes a day after it was announced that a proposed class-action lawsuit was filed against Sony Corp. claiming damages of more than $1 billion for a data breach affecting more than 100 million customers of the Sony PlayStation Network, Qriocity entertainment service and Sony Online Entertainment.

The information stolen during a cyberattack on the company's network may include names, birthdates, email addresses, passwords and some credit card and banking information.

Stoddart said she was "very disappointed that Sony did not proactively notify my office of the breach."

However, she said the company has been co-operative since being contacted by her office, and she is pleased that the company is limiting damage by shutting down its systems, launching a forensic audit and notifying users.

Stoddart noted that before the election, Parliament had been considering legislation that would require companies to notify consumers of data breaches.
Doesn't have 'a lot of teeth'

Avner Levin, director of the Privacy and Cyber Crime Institute at Ryerson University, said such legislation exists in the U.S. and is the reason why Canadian consumers sometimes get notified of data breaches involving their personal information.

Right now, he said, Canada's privacy commissioner doesn't "have a lot of teeth" to deal with breaches of Canadian privacy legislation. If enforcement is needed, the commissioner's investigation is not enough. The case starts over and the breach needs to be re-proven before the Federal Court, Levin said.

"I would say if you let privacy commissioner have some kind of enforcement powers — the powers to order companies to do things — that would take it a step forward for the consumer."

He added that one of the reasons why companies and consumers aren't more vigilant about data breaches is the consequences for them tend to be minimal. Typically, after a breach, consumers continue to do business online; companies' stock prices don't fall dramatically and if they do, they recover, he said.

"It doesn't get quatified into some kind of financial harm that you might sort of imagine."