In May it was announced on news sites such as the BBC and SkyNews that the popular e-commerce site eBay was breach late February and early March. The breached database contained phone numbers, addresses, date of birth, other personal data and encrypted passwords. The company never disclosed how many of the 148 million active accounts were affected but, has asked all active users to change their passwords. The hackers infiltrated the network by obtaining, a small number of employees’ login credentials. Luckily the hacker did not access eBay subsidiary, Paypal’s financial database because it was stored on a separate network.
Since the news many customers have complained and criticised the way the situation was handled, Attorney Generals in at least 3 states in the US has begun investigating the cyber-attack incident. Users was also outraged that eBay waited 2 weeks before publishing the breach after they found out, their explanation was:-
“For a very long period of time we did not believe that there was any eBay customer data compromised,” commented the Global Marketplaces Chief Devin Wenig shortly after the news was announced.
After promising they will make password resets mandatory on the website, it was days before this was carried out and for users that wanted to change their passwords after the initial announcement, they were unable to because the site struggled with the abnormal number of reset requests. Both of these factors added to the negative feelings amongst eBay users.
In a bid to assure customers they released a statement saying they have seen no indication of increased fraudulent account activities on the site but, it would seem eBay has missed the point as the main concern is… what the cybercriminals can potentially do with the non-encrypted information they stole like the numbers, addresses, date of birth, etc. – so the question is, why wasn’t this personal data encrypted like the passwords?
Considering eBay is responsible for a vast amount of personal data, you would assume they have a better incident response and management, breach detection, network admin login protection, and communication practices.
The most important lessons to take from this data incident is that good IT security practices for networks is essential for all businesses, regular network security assessments are required, educate staff on security and have good crisis management.
Breaches can happen to any company and poor incident response and management can just be like rubbing more salt to the wound, with the potential to create more long-term brand reputation damage.
For more information on IT network security practices and services please feel free to contact us on 0845 603 5552