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1.5 Million Verizon Customer Records Put Up For Sale (arstechnica.com)

An anonymous reader writes: A customer database as well as information about Verizon security flaws were reportedly put up for sale by criminals this week after a data breach at Verizon Enterprise Solutions. According to KrebsOnSecurity, "a prominent member of a closely guarded underground cybercrime forum posted a new thread advertising the sale of a database containing the contact information on some 1.5 million customers of Verizon Enterprise." The entire database was priced at $100,000, or $10,000 for each set of 100,000 customer records. "Buyers also were offered the option to purchase information about security vulnerabilities in Verizon's Web site," security journalist Brian Krebs reported. Verizon has apparently fixed the security flaws and has reassured its customers by saying "our investigation to date found an attacker obtained basic contact information on a number of our enterprise customers" and that "no customer proprietary network information (CPNI) or other data was accessed or accessible."

26 comments

  1. Come on, people! We need to start using Rust! by Anonymous Coward · · Score: 0

    Every time I hear about a security breach or even just bugs in software, I feel sick to my stomach. Incidents of that sort just wouldn't happen if we were all using Rust for all software. I know there's a lot of software that will take a long time to rewrite in Rust, but that's exactly why we must begin using Rust now. The longer we don't rewrite all of our code in Rust the more at-risk we are. The time to move into the future is now, and the future is Rust.

    1. Re: Come on, people! We need to start using Rust! by Anonymous Coward · · Score: 1

      That's a load of horse shit. My old F-150 had rust all over it, and it didn't do shit for my security.

    2. Re: Come on, people! We need to start using Rust! by Hylandr · · Score: 1

      Old cars are the only place rust adds credibility.

      For the rust dweebs, every language is hackable as long as it's written poorly.

      --
      ~ People that think they are better than anyone else for any reason are the cause of all the strife in the world.
  2. What if most customer info was stored "near-line"? by davidwr · · Score: 1

    Is it time for companies to keep most customer records "near-line" instead of "online"?

    Yes, this may mean having the company put you on hold for a minute or two while your record gets moved from "near line" to "online" when you call for help, but at least "massive" data breaches will be "less massive."

    Question: What's another major advantage of keeping records "near-line" besides fewer victims?
    Answer: You can keep track of how many records are being moved in any given period of time and quickly respond if the numbers become anomalous.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  3. the new reality by Anonymous Coward · · Score: 0

    The new reality is that everyone should assume their private data is compromised. If you want privacy, you must do something anonymously. Unfortunately, that may not be possible for things like cell phones. After the attacks in Paris, it may not be possible to buy a prepaid SIM card without showing ID. Verizon doesn't take the problem seriously when they're downplaying the breach. Until there are severe penalties for insecure data management (including anything other than social security where an SSN is used as identification), this will continue. Public key encryption can remove the need for secret identifiers, but there's no interest in making this happen. Until then, the new reality is to assume your data is compromised, monitor everything, don't disclose any unnecessary details, and use strong encryption.

    1. Re:the new reality by Locke2005 · · Score: 4, Interesting

      Phone companies just don't care. My ex went into T-Mobile and walked out with $406 worth of equipment, charging the whole thing to an equipment purchase installment plan. The only problem is, she gave them my phone number, and they charged it to my account! She even gave them her Oregon Driver's license so they didn't charge her sales tax, but at no point did the friendly salesperson think to check that the name, address, and phone number listed at the top of the contract actually matched the name of the person that signed it! (They took it off my account and charged it to hers instead only when I complained in person.)

      --
      I've abandoned my search for truth; now I'm just looking for some useful delusions.
    2. Re:the new reality by Anonymous Coward · · Score: 0

      Apparently they did care, since they fixed your issue.

  4. There is no such thing as "near-line". by Anonymous Coward · · Score: 0

    There's no such thing as a "near-line" system. If what you're calling the "near-line" system is connected to the online system in any way, then it's essentially online, too. If the online system can be violated, then the intrusion detection measures and the temporary separation that you're talking about can very likely be disabled or defeated, too.

    As a fine poet once wrote,

    I will be your father figure!
    I have had enough of crime,
    So I am gonna love you
    'till the end of time!

    So what you're suggesting just doesn't work in reality. There is no such thing as "near-line". If a system isn't completely isolated, then it's online. Those are the only two possible states: offline, or online.

    1. Re:There is no such thing as "near-line". by U2xhc2hkb3QgU3Vja3M · · Score: 1

      There's three states:
      - internet
      - intranet
      - offline

      I'm guessing the parent post meant "intranet" but didn't know that word.

    2. Re:There is no such thing as "near-line". by Anonymous Coward · · Score: 0

      Near-line usually refers to tape or virtual tape systems. Other people call it tier 3 storage. Amazon calls it Glacier.

      That said it wouldn't solve the problem and they could easily monitor the number of records that a single account accesses in a given hour or day or week or month or all of the above to gain the ability to recognize data access that is outside of the norm. Companies don't want to invest in actual security though as it costs them lots of money and usually makes a product less friendly.

    3. Re:There is no such thing as "near-line". by davidwr · · Score: 2

      What I envisioned was an offline system that could retrieve data in a matter of minutes, with a "skinny pipe, heavily alarmed with independent monitoring equipment" system sitting between the offline storage system and the "main, online" system. "Skinny pipe" to make it physically impossible to do a wholesale data dump in a short period of time, and "heavily alarmed with independent monitoring equipment" so the alarms can't be hacked through normal means (they could be hacked by social engineering or perhaps by side-channel attacks, but the latter is hard and the former can be controlled by limiting access to a few well-trained, loyal individuals).

      Essentially this is the computer equivalent of having a locked file-room with only 1 person allowed to access it, with several well-trained, highly-observant, loyal-to-the-company people watching that one person and raising an alarm any time that person's behavior was out-of-the-ordinary. That person would retrieve data from the locked file-room upon request and store changed files upon request, with all transactions logged for audit purposes.

      The analogy breaks down since the "main, online" part of the computerized system would have to purge its copies of data after a short period of time - typically hours or days but in some use cases perhaps in seconds or, for that matter, weeks, and that capability isn't reflected in the analogy above.

      --
      Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    4. Re:There is no such thing as "near-line". by davidwr · · Score: 1

      Companies don't want to invest in actual security though as it costs them lots of money and usually makes a product less friendly.

      "it costs the lots of money" vs "going bankrupt from the bad reputation and lawsuits resulting from multiple serious breaches" - which is going to happen sooner or later.

      "product less friendly" may be a necessary inconvenience, much like having to lock your home when you go to work every day is a necessary inconvenience.

      --
      Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    5. Re:There is no such thing as "near-line". by Anonymous Coward · · Score: 0

      "it costs the lots of money" vs "going bankrupt from the bad reputation and lawsuits resulting from multiple serious breaches" - which is going to happen sooner or later.

      Do you have any examples?

      I don't recall any large business going under or even suffering severe penalties (relative to revenue) because they lost millions of customer records. They get a PR black eye for a while, then everyone goes about their business as usual.

      I would love for this to be true, but history as far as I know does not support you.

  5. Seriously? by Anonymous Coward · · Score: 0

    Verizon Communications made like $131 billion in revenue and $18 billion in profits last year. How is it that a company that fat with money, and that charges some of the highest rates of any ISP, not have the ability to protect its customer records... or perhaps it just doesn't care.

    1. Re: Seriously? by Anonymous Coward · · Score: 0

      It doesn't care. Why should it? It doesn't affect their bottom line. And that is all that matters. I know you knew this and your question was hypothetical. Sorry.

    2. Re:Seriously? by Anonymous Coward · · Score: 0

      The cost of securing data is greater than the chance of leaking data multiplied by the cost of leaking the data. Thus far, the cost of a leak has always been somewhere between zero and a rounding error.

  6. $.10 by Anonymous Coward · · Score: 0

    $0.10 per record? Seems high.

  7. Verizon excellence in security breach award! by Anonymous Coward · · Score: 0

    Considering Verizon considered Comodo's anti-virus award worthy, it shouldn't come as a surprise that Verizon's own security is full of "excellence" in security holes as well.

  8. NSA regulations didn't help? by Anonymous Coward · · Score: 0

    Wow, so all of the excessive lock down of the networks at Verizon that make life difficult for their suppliers, those NSA regulations as well, that require everyone who accesses their network to be in the USA to even think about logging-in into a server, those didn't help did they?

    Nope, funny isn't it? You try to keep the criminals and bad guys out by assuming that only people outside of the US could possibly want to hurt Americans... guess what? You got your own problems.

  9. Verzon's Response are blatant lies by Anonymous Coward · · Score: 0

    My account was hacked about two weeks prior to me reading this post. They person was able to get into my account ,change my mailing address, and order and iPad with no Verizon person questioning this. Their response was to only change my account to require anyone making purchases on my account to show up in person at a Verizon outlet. I changed all of my information to login, but I'm not convinced that Verizon gives a damn about security.

  10. Business as usual? by Anonymous Coward · · Score: 0

    1.5 Million Verizon Customer Records Put Up For Sale

    At first I wondered why this is news. Isn't this just Verizon doing business as usual? What's so unusual about that?

    Then I saw it was about criminals.

    So I guess when it's criminals doing the selling, then it's news. But when the company itself sells its own customer data, it's not news.

    Do I have that right?

  11. Bitcoin enabling? by duke_cheetah2003 · · Score: 1

    I have to wonder if the value and mostly anonymous nature of Bitcoins are enabling these kinds of deals. I'm not saying Bitcoin is necessarily evil, but do I have to wonder to myself, would these kinds of ransoms and/or sales of stolen data be as easily possible without Bitcoin?

    1. Re:Bitcoin enabling? by Anonymous Coward · · Score: 1

      Surely no ransoms ever happened in the days before Bitcoin!

    2. Re:Bitcoin enabling? by wardrich86 · · Score: 1

      The sale of tote bags and brief cases plummets around the time Bitcoin was created.

  12. Industrial Revolution times analogous by Anonymous Coward · · Score: 0

    Auction to allocate the exploration and exploitation rights of a coal mine