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Sony in crisis, things heating up by the day

Posted on Wednesday, 27 April 2011 by Speed, source: Playstation Blog
It seems Sony Entertainment needed almost a week to find out user information had been comprimised when the intrusion of PSN occured, and there's more.

An update of the Playstation Blog read as follows:
“We wanted to take this opportunity to clarify a point and answer one of the most frequently asked questions today.

“There’s a difference in timing between when we identified there was an intrusion and when we learned of consumers’ data being compromised. We learned there was an intrusion 19th April and subsequently shut the services down. We then brought in outside experts to help us learn how the intrusion occurred and to conduct an investigation to determine the nature and scope of the incident. It was necessary to conduct several days of forensic analysis, and it took our experts until yesterday to understand the scope of the breach. We then shared that information with our consumers and announced it publicly yesterday evening.

“For those who were looking there’s also an FAQ with some more on frequently asked questions.

“Thank you for your continued patience and support.”
Meanwhile, Sony is getting under heavy fire from different sources.

Edge is reporting that the UK Information Commissioners Office is challenging the company's Terms and Conditions which state the company isn't "liable for any loss of data or any “unauthorised access,” to said data when using Sony Online Network". If user data is stored in the UK (which they don't know at the moment) then that claim would be void:
“this clause would not free them from their obligations under the UK Data Protection Act,”

“If we found a breach, one of the actions we could take would be to issue an undertaking, which is an agreement between the ICO and the company that if they are handling personal information they have to bring about set improvements in order for them to be compliant with the act,” the ICO representative explained. “If the company is not compliant with the act within a certain time limit, further action would be taken and we might consider an enforcement notice or issue a monetary penalty.

“For serious breaches of the act, we can issue a monetary penalty up to £500,000.”
Joystiq has word that Connecticut Senator Richard Blumenthal is demanding answers from Sony regarding the lack of information since the intrusion originally occured. Of course we had the official announcement yesterday, but it seems the Senator isn't happy with only that:
When a data breach occurs, it is essential that customers be immediately notified about whether and to what extent their personal and financial information has been compromised. Additionally, PlayStation Network users should be provided with financial data security services, including free access to credit reporting services, for two years, the costs of which should be borne by Sony. Affected individuals should also be provided with sufficient insurance to protect them from the possible financial consequences of identity theft.

I am concerned that PlayStation Network users' personal and financial information may have been inappropriately accessed by a third party. Compounding this concern is the troubling lack of notification from Sony about the nature of the data breach. Although the breach occurred nearly a week ago, Sony has not notified customers of the intrusion, or provided information that is vital to allowing individuals to protect themselves from identity theft, such as informing users whether their personal or financial information may have been compromised. Nor has Sony specified how it intends to protect these consumers.

PlayStation Network users deserve more complete information on the data breach, as well as the assurance that their personal and financial information will be securely maintained. I appreciate your prompt response on this important issue.
Forbes spoke with The Ponemon Institute, a data-security research firm, and they're claiming this issue with PSN could cost Sony up to $24 billion:
The Ponemon Institute, a data-security research firm, estimated that the cost of a data breach involving a malicious or criminal act averaged $318 per compromised record in 2010, up 48 percent from the year earlier.

That could pin the potential cost of the PlayStation breach at more than $24 billion.
Finally (for today), the first class action lawsuit against Sony has started! CNet is reporting:
The suit was filed today on behalf of Kristopher Johns, 36, of Birmingham, Ala., in the U.S. District Court for the Northern District of California. Johns accuses Sony of not taking "reasonable care to protect, encrypt, and secure the private and sensitive data of its users."

He also believes Sony took too long to notify him and other customers that their personal information had been exposed. Because of that, the complaint alleges, Sony did not allow its customers "to make an informed decision as to whether to change credit card numbers, close the exposed accounts, check their credit reports, or take other mitigating actions."

The lawsuit is asking for monetary compensation and free credit card monitoring, and is seeking class action status.
In other news:

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djibril

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Posted on 12:38, April 28th 2011
 

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