Sony to Testify In Person Re: PSN Outage

Sony will finally be sending a high-level executive to testify before the US House of Representatives’ Committee on Energy and Commerce’s Subcommittee on Commerce, Manufacturing, and Trade on the three week outage of PlayStation Network and Sony’s slowness in informing its customers on the compromising of personal and credit card data.

Ken Johnson, an aide to subcommittee chairwoman Mary Bono Mack (R-CA), told The Atlantic Magazine that Tim Schaff, president of Sony Network Entertainment, would testify before the subcommittee next week:

“While Chairman Bono Mack remains critical of Sony’s initial handling of the data breaches, she also is appreciative that the company has now agreed to testify. The Chairman firmly believes that the lessons learned from…the Sony…experiences can be instructive and guide us as we develop comprehensive data protection legislation. We expect to introduce that legislation, which will provide new safeguards for American consumers, in the next few weeks.”

Previously, Sony’s Kaz Hirai had only sent his testimony in a letter to the Committee.

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Expert: Sony Negligent In PSN SecurityExpert: 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.)

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