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

The PSN FiascoThe PSN Fiasco

It’s now the US government’s turn to question Sony about its online security, which follows the UK government’s scrutiny into the company’s affairs.

In a letter addressed to PlayStation executive deputy Kaz Hirai, the Subcommittee on Commerce, Manufacturing, and Trade has prepared a list of questions related to the intrusion; the list can be downloaded from the New York Times here. The letter asks several questions that Sony has not disclosed to the public, such as:

  • How many PSN users had a credit card on file
  • Why Sony cannot determine if credit card was stolen.
  • What are Sony’s plans towards increasing its security in the future.

The Subcommittee’s press release states:

“Given the amount and nature of personal information known to have been taken, the potential harm that could be caused if credit card information was also taken would be quite significant. The Subcommittee on Manufacturing, and Trade has a longstanding interest in consumer privacy, identity theft, and industry efforts to address threats posed by unauthorized access to consumers’ personal information resulting from a data breach.”

The Subcommittee is requiring a reply by no later than May 6, as part of a privacy driven effort “to protect consumer information.”

Meanwhile, Kaz Hirai will be holding a press conference tomorrow from Sony Japan, to address the PlayStation Network hacking crisis.

(more…)

Microsoft’s High Hopes Holiday LineupMicrosoft’s High Hopes Holiday Lineup

This year Microsoft believes they’ve got a heavy hitter lineup of titles starting around now until the end of the year including: Gears of War 2, Fable 2, Guitar Hero: World Tour, Rock Band 2 and Fallout 3. They’re also looking at Lips, their karaoke title with a casual appeal to bring on the sales figures this season.

What about the PlayStation 3? Some of these titles, such as Guitar Hero: World Tour and Rock Band 2 are not exclusives so both consoles have their chance, right? Microsoft’s looking at historical data on trends from Madden 2009 and see the 360 console out-selling the game even though it’s a shared franchise title.

Strong sales on the Xbox 360 suggest we’ll see those same sales this holiday season. Sure, the PlayStation 3 will get some big numbers thrown up but they may not compete on the same level as the Xbox 360.

All-in-all, Microsoft wants to toss up the one-million game units sold for the holidays, not including consoles we believe. That’s a strong holiday sales cycle if they can pull it off.

Even with economic downturns and financial markets doing poorly, entertainment tends to be something people are willing to invest. Will they pull it off? Will PlayStation 3 keep up?

Sony’s E3 Conference: Fairly ImpressiveSony’s E3 Conference: Fairly Impressive

We’re all used to Sony falling on their face at E3 in the last few years, but, this year, things were different. They’re information was delivered well, they had a great presentation medium using Little Big Planet‘s game engine as a presentation platform over the standard PowerPoint slides and everything went smoothly.

The format for displaying their facts, figures and sales numbers was well played. Nobody wants to sit in front of a chart and listen to an executive blab on about what they did and where they’re going. But, when you add some Little Big Planet flair, such as having the graphs built within their game engine and Sack Boy hopping around on the statistics things smooth over well.

I was confused on why they chose to display the Little Big Planet graphic engine followed by Resistance 2 and then taper into talk about the PlayStation 2 with game previews. It seems more appropriate to bring in the PlayStation 2 product line first, then blow the crowd away with the current generation graphics. Instead, we were awed by the epic Resistance 2 graphics and then presented with old generation stale game engines… silly.

They went on to show off the wide array of PSP games arriving and a little trailer for Resistance Retribution for the PSP. The game system is definitely more mature than their DS competitor but seems to have a bit less sales momentum.

Overall, Sony did one right by talking about their three tiered solution to gaming instead of focusing too much on a single system. PlayStation 3 numbers are good but not mind boggling (like Wii) and their PSP product is doing much better than it used to and the PlayStation 2 numbers are high but falling compared to last year (as would be expected).

By focusing on the full suite of products they’ve put their eggs into many baskets rather than rely on their bleeding edge flagship product which still needs time to grow.

Well done Sony.