Sony Hacks Go From Bad To Worse

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By Douglas A. McIntyre Updated Published
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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information from approximately 24.6 million SOE accounts may have been stolen, as well as certain information from an outdated database from 2007.  The information from the outdated database that may have been stolen includes approximately 12,700 non-U.S. credit or debit card numbers and expiration dates (but not credit card security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

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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