Consumer Electronics

Sony Hacks Go From Bad To Worse

The press reaction to Sony’s (NYSE: SNE) latest news about another hack of its PlayStation network is predictable. How could it happen again? Sony just disclosed that 77 million of its customers’ records may have been exposed and suggested that those customers change their credit card data.

The new announcement:

Sony Corporation and Sony Computer Entertainment announced today that their ongoing investigation of illegal intrusions into Sony Online Entertainment LLC (SOE, the company) systems revealed yesterday morning (May 2, Tokyo time) that hackers may have stolen SOE customer information on April 16th and 17th, 2011 (PDT).  SOE is based in San Diego, California, U.S.A.

This information, which was discovered by engineers and security consultants reviewing SOE systems, showed that personal information from approximately 24.6 million SOE accounts may have been stolen, as well as certain information from an outdated database from 2007.  The information from the outdated database that may have been stolen includes approximately 12,700 non-U.S. credit or debit card numbers and expiration dates (but not credit card security codes), and about 10,700 direct debit records of certain customers in Austria, Germany, Netherlands and Spain.

With the current outage of the PlayStation® Network and Qriocity™ services and the ongoing investigation into the recent attacks, SOE had also undertaken an intensive investigation into its system. Upon discovery of this additional information, the company promptly shut down all servers related to SOE services while continuing to review and upgrade all of its online security systems in the face of these unprecedented cyber-attacks.

On top of that, Sony will lose a great many of the customers who will suffer through the new hack, just as they were supposed to with the one last week.

Douglas A. McIntyre

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