Expert: Sony Negligent In PSN Security

An expert has given testimony to the US House of Representatives Subcomittee on Commerce, Manufacturing, and Trade during its commencement on hearings on the “unauthorized intrusion” on Sony’s PlayStation Network and Qrocity service, stating Sony knew that their security software was dated and lacked any sort of firewall against hacking.

Cybersecurity expert Dr. Gene Spafford’s testimony stated that security experts discovered discussions on forums that talked about how the PSN’s security was lacking. The threads revealed that the network was using old versions of the Apache Web server software, which “was unpatched and had no firewall installed.”

Worse, two to three months before the attack, the vulnerability was reported “in an open forum monitored by Sony employees,” but the company took no action to rectify the situation. If the testimony is accurate, Sony could be slapped with a serious criminal negligence charge.

The Sony intrusion alone compromised 100 million accounts both on the PSN and its Qriocity service, according to Spafford. He also cited the total cost of the breach to Sony, credit card companies, and other outfits, at $21 billion. Thieves in credit-card theft forums actually complained that the PSN breach was so great that it was depressing the price of such information by a “factor of five or 10” on the black market.

Spafford didn’t reserve his accusations for Sony, either. He stated that law enforcement is ill-equipped to handle cyberterrorism and cyberthieft. Additionally, most companies are not equipped with enough security measures because “investing in security measures affects the bottom line. They don’t understand the risks involved by not investing in security. … So when they are hit, they pass that cost along to their customers, and to the rest of society.” In other words, a classic case of being penny wise and pound foolish.

Spafford’s proposed solution to future security is to limit the amount of data kept by companies such as Sony and to “age the data” so it expires after a certain time.

C-Span posted the video of the testimony here.

(Thanks, GameSpot.)

0 thoughts on “Expert: Sony Negligent In PSN Security”

  1. One of the better pieces on the PSN fiasco that I’ve read, congrats Jonah!

    I had two jobs as a programmer; in both cases, interacting with the IT department felt more like interacting with Dilbert’s “Information prevention department”, ran by Catbert. They even wanted (and succeeded in one place) to push a “Service Level Agreement”: it’ll take two days to create a new password for this, seven days to do that etc.
    They just don’t put enough heart in it.

    To be fair, my very first job though was … in the IT department of my college! IT work is hard. If you screw up (and we did screw up sometimes), you could kiss your weekend goodbye . Usually, we’d investigate the issue that very evening, then tried to implement it either during the next day, or, at worst, if the computers we’d want to alter were being in use, in the weekend.
    The lessons I learned there is that: (1) you must react quickly and (2) if you put a bit of your heart into your work, you can get surprisingly good results.

    Nice find on the “depressing the price of such information by a “factor of five or 10? on the black market”. I guess the PSN issue is the equivalent of flooding the market with products 🙂

    @” limit the amount of data kept by companies such as Sony and to “age the data””
    This is security basics. If you don’t want to be responsible for safekeeping secret information, then don’t store secret information on your servers. Period.

  2. One of the better pieces on the PSN fiasco that I’ve read, congrats Jonah!

    I had two jobs as a programmer; in both cases, interacting with the IT department felt more like interacting with Dilbert’s “Information prevention department”, ran by Catbert. They even wanted (and succeeded in one place) to push a “Service Level Agreement”: it’ll take two days to create a new password for this, seven days to do that etc.
    They just don’t put enough heart in it.

    To be fair, my very first job though was … in the IT department of my college! IT work is hard. If you screw up (and we did screw up sometimes), you could kiss your weekend goodbye . Usually, we’d investigate the issue that very evening, then tried to implement it either during the next day, or, at worst, if the computers we’d want to alter were being in use, in the weekend.
    The lessons I learned there is that: (1) you must react quickly and (2) if you put a bit of your heart into your work, you can get surprisingly good results.

    Nice find on the “depressing the price of such information by a “factor of five or 10? on the black market”. I guess the PSN issue is the equivalent of flooding the market with products 🙂

    @” limit the amount of data kept by companies such as Sony and to “age the data””
    This is security basics. If you don’t want to be responsible for safekeeping secret information, then don’t store secret information on your servers. Period.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Wii Will Beat PS2 in Sales, PS3 Like GameCube?Wii Will Beat PS2 in Sales, PS3 Like GameCube?

If the sales continue as they have been for Nintendo and their little white Wii, you’ll be looking at the top-dog for overall console says–best selling console ever. This would push Sony’s PlayStation 2 to the second spot of awesome console victories over the last seven generations of gaming hardware.

gamecubeBefore Sony fans unite to comment storm, remember, the PS2 had a lot of great games and continues to have games coming through for its console. People are still debating the life-span of the Wii product line, regardless to overall sales figures while the PS2 no doubt had a long live and still continues to have a long life, heck 30%+ of gamers still play the darn thing. Sony has been able to utilize the PS2 and its profitability to glide through the initial PS3 sales slump and get the momentum growing for their current generation console.

Yet, some folks are comparing the PlayStation 3 to the GameCube in terms of sales performance.

“During the first 26 month period, the PS3 sold 6.79 million units in the U.S., compared to 6.75 million GameCubes during its first 26 months. While the GameCube finished a distant third last generation, the console was profitable for Nintendo.” (Kotaku)

Before you get out your flame pens, this analogy wasn’t constructed by me, I’m merely the messenger. Again, to defend Sony (read: put on  my flame retardant outfit) Sony’s console is slowly building momentum, depending on who’s statistics you read anyway, and their product will eventually become a profitable sale. The GameCube was profitable as well but boasted “dozens” of great games to play while the PS3 obviously is pushing to become the hardcore gamers console of choice with top tier graphics, blu-ray playback and a free online service. GameCube was really just a cube that played some games, a one-trick-poney as it where.

It still feels odd to say Nintendo is winning and Sony isn’t winning (I avoid the term losing to yet again to kill the flames) and… Microsoft?

Microsoft, in my opinion, is in the best possible situation. They’re not being targetted as the number one console and being critizised for holding such a position and they’re not dragging near the bottom to be poked fun at by the industry and bloggers around the world (mainly, the United States.) They’re stealthing by with good sales compared to the last generation console by “improving its fortunes.” The Xbox 360 “sells 18 percent faster than its predecessor, according to NPD figures, and even turned a profit, something the original Xbox never did” according to VentureBeat.

The PlayStation 3 has many years ahead of it and we’re sure plenty of gamers will eventually buy into the console because the technology within that black box is designed to last many years. Considering only 30% of the United States is rolling with an HD-TV it’s not surprising they’re not jumping at the opportunity to own a PlayStation 3. Why is the news all over the PlayStation 3 and talking trash about it? Sony was the console to beat when the PlayStation 2  reigned the industry, to see the console go from #1 to #3 in a single generation is shocking but not new; we saw Nintendo suffer the same fate when the PlayStation originally launched.

But, is the PS3 like the GameCube? There are too many factors to make that comparison, especially considering the growth in the game industry, the growth of storage and video technology and the general acceptance of video games. Hell, you can buy video games at convenience stores in the United States now, the industry isn’t the same as it was in 2001.

Please discuss…but don’t shoot the messenger. 🙂

Wii Takes US Lead In Console WarWii Takes US Lead In Console War

Just in case people were actually thinking the Xbox 360 was going to hold out against a viral console, Nintendo is now the best selling console in the United States. Anyone really surprised?

This months sales figures for consoles broke down something like this:

  • Nintendo DS: 783,000
  • Wii: 666,700
  • PlayStation 3: 405,500
  • PSP: 337,400
  • Xbox 360: 219,800
  • PlayStation 2: 188,800

Barring the crazy hand held sales of the Nintendo DS, you can clearly see Nintendo holds top-spot yet again, but this month Sony’s PlayStation 3 followed right behind. Although there was a good 200,000 difference, Sony didn’t do so bad; imagine if Nintendo had an MGS4 killer app?

Metal Gear Solid 4 sold 871,300 copies, individually, and roughly 1-million if you include those bundled with the PlayStation 3. The question is clearly answered, MGS4 helped sell Sony’s consoles. The new question will be: Can Sony keep the 2nd place rank against Xbox 360?

Until Gears of War 2, there isn’t a killer game for the Xbox 360 and GoW2 probably won’t move any consoles, those that love the series bought their console when Gears of War arrived. The next big console mover may, in fact, be Final Fantasy XIII for the Xbox 360 as it’s no longer exclusive to Sony and the 360 is a more cost effective way to get into the game.

How does Nintendo continue to keep the pace? Perhaps because their games are still in top positions with Wii Fit in 4th place, Wii Play in 5th place and Wii Kart in 7th on the June 2008 software charts.

(Thanks, 1up)

Small Games Make Big WavesSmall Games Make Big Waves

The game industry is doing “okay” in this bad economic time compared to other industries.  Primarily, Nintendo is rocking the house with their games, hand-held’s and consoles while mobile developers are showing some great successes in the industry. Many success stories in our industry are based on small titles, downloadable games of the more “casual” style while a few larger titles are experiencing slower than expected sales trends.

wiiwareWe’ve mentioned this in the past, but the tough economy gives many smaller developers great opportunities for success. While big publishers struggle to look good in the eyes of the investor, tiny developers can produce quality titles for minimal cash investment and time to market. Ten years ago, smaller developers tried to compete with the big boys making larger titles, cloning successful titles or simply asking investors to put it on the line for their game. Today, developers can create a small iphone app, a cute WiiWare title or exploit the XNA efforts of Microsoft for Xbox Live Arcade and actually have a chance.

There are still challenges with these smaller developers when working in the WiiWare and XBLA publishing channels, your game marketing and promotion becomes highly reliant on Nintendo, Microsoft or Sony for PSN. Tom Prata, senior director of Nintendo of America talked to Gamespot about this issue:

“Finally, there’s the problem of promotion. It’s not enough to make a great game if nobody notices it. Prata specifically said Nintendo will be devoting more resources to support the promotion and development of WiiWare games in the future.” (gamespot)

Of course, in the world of smaller game titles and downloadable casual games, you’re going to be at risk of finding a lot of “shovelware” — products that are only released to make a quick dime, often based on some license or popular theme/character. The great game titles will, hopefully, rise to the top and show themselves off amongst all the wanna-be money makers.

Those smaller developers putting a huge passion into their titles actually have a chance in this new industry trend. Game makers, internationally, now have a chance to grasp a small piece of the industry and make their dreams come true. The core audience may see this as a trend of noisly low quality titles, but I believe the industry needs this change to grow a new generation of developers based on niche interests.

While many can wait for their next release of Madden the rest of us will continue to spend a little money to see what the future innovators are going to be bringing to the table.