Security

Blindsided Sony Needed a Single Security Chief

Bloomberg post-mortem of PlayStation devastation shows CEO misunderstood warnings, and risks, of “cyber war.” Sole-chief approach is recommended for firms.

Sony Corp., besieged by hackers since April, considered its PlayStation Network an unlikely target even after threats by the online collective Anonymous and three separate security incidents in 2008.

The hacker group declared in April that it would wage a cyber war against Sony for trying to stop people from tinkering with the PlayStation 3. Three years earlier, the company faced three breaches in Europe, including one in which Sony said some PlayStation Network user data might have been stolen.

The repeated incidents should have warned Sony its online network was vulnerable, said Eugene Spafford, a computer science professor at Purdue University in West Lafayette, Indiana. The failure to enact safeguards such as appointing a single chief of security may show Sony misunderstands the risks inherent in Chairman and Chief Executive Officer Howard Stringer’s networked strategy, he said.

“The evidence we’ve seen so far speaks to a lack of a good data management plan and a good security plan,” said Spafford, who specializes in information security, computer crime investigation and information ethics.

Japan’s Ministry of Economy, Trade and Industry said today it told Sony to carry out preventive measures against data breaches, instructed the company to ease customer concerns over misuse of credit cards and share more information among affiliates.

Later in the day, a letter sent by Sony to two U.S. lawmakers said that the company had much more evidence about how the hacking took place.

Spreading Attacks

Sony has struggled to keep up with the barrage that started in mid-April. The Qriocity and PlayStation Network services were knocked out for almost a month, compromising data in more than 100 million accounts.

In the past week, the Tokyo-based company has been hit with smaller intrusions -- a breach at online-service unit So-net Entertainment Corp. led to the misuse of user names and passwords of 128 customers. This week, Sony shut web pages that were targeted in Greece, Canada, Thailand and Indonesia.

The PlayStation Network will resume in Japan, Taiwan, Singapore, Malaysia, Indonesia and Thailand tomorrow, while services in South Korea and Hong Kong will remain suspended until further notice, Sony said today.

‘New Experience’

“Obviously our network security didn’t stop the attack and we’re trying to understand why, and we’ve made big strides in bolstering our security,” Stringer said in a May 17 interview, before the most recent incidents.

Sony believed it had “good, robust security.” Stringer said. He rejected suggestions that Sony is paying for a lack of vigilance and said he was unaware of the 2008 intrusion on the PlayStation Network.

Since most users of PSN don’t pay, and most threats focus on stealing credit card information, the theft of passwords and other personal data from those services appeared less likely, Stringer said.

“We have a network that gave people services free,” Stringer said. “It didn’t seem like the likeliest place for an attack.”

When the April incursion first started, he didn’t know how serious it was, Stringer said. “I really don’t think I could apologize for not knowing,” he said. “It’s a whole new experience for everybody at this scale.”

Anonymous Vow

Originally published on www.bloomberg.com. Reprinted with permission from Bloomberg News. Story copyright 2012 Bloomberg News communications. All rights reserved.
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