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UK Watchdog Issues $334K Fine For Yahoo's 2014 Data Breach (theregister.co.uk)

An anonymous reader quotes a report from The Register: Yahoo's U.K. limb has finally been handed a $334,300 (250,000 GBP) fine for the 2014 cyber attack that exposed data of half a million Brit users. Today, the Information Commissioner's Office issued Yahoo U.K. Services Ltd a $334,300 (250,000 GBP) fine following an investigation that focused on the 515,121 U.K. accounts that the London-based branch of the firm had responsibility for. The ICO said "systemic failures" had put user data at risk as the U.K. arm of Yahoo did not take appropriate technical and organizational measures to prevent a data breach of this size.

In particular, the watchdog said there should have been proper monitoring systems in place to protect the credentials of Yahoo employees who could access customer's data, and to ensure that instructions to transfer very large quantities of personal data from Yahoo's servers would be flagged for investigation. It also noted that, as a data controller, Yahoo U.K. services Ltd had a responsibility to ensure its processors -- in this case Yahoo, whose U.S. servers held the data on U.K. users -- complied with data protection standards.

29 comments

  1. Hmm by Anonymous Coward · · Score: 0

    Does Yahoo even have that kind of money anymore?

    1. Re:Hmm by Anonymous Coward · · Score: 0

      a $334,300 fine for the 2014 cyber attack that exposed data of half a million Brit users.

      Less than a dollar per person. Just the cost of doing business. Marissa Mayer probably spent more than that on lunch over the course of a year.

    2. Re:Hmm by arglebargle_xiv · · Score: 1

      That was my reaction as well. For USAians, there's a British expression "slap on the wrist with a wet bus ticket". This fine is a fine example of this.

  2. Brexit = Russian Plot by Anonymous Coward · · Score: 0

    LOL - you limey bastards are just and uneducated and racist as the colonies across the pond. Although at least Teresa May isn't a stone cold traitor like Moscow Donald.

  3. So, about .50 GBP ... by CaptainDork · · Score: 2

    ... per incident.

    That's the damages? Seriously?

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    It little behooves the best of us to comment on the rest of us.
    1. Re:So, about .50 GBP ... by Anonymous Coward · · Score: 0

      they should at least pay their users minimum wage for the time they need to put in to fix Yahoo's fuckup

    2. Re:So, about .50 GBP ... by Anonymous Coward · · Score: 0

      It make you wonder if you could sell the records on the black market for more than that. Does this mean that it's economically viable for companies to breach their own customers' data?

    3. Re:So, about .50 GBP ... by Anonymous Coward · · Score: 0

      Yep. Apparently all they have to do is make sure they make at least half a buck off of each person's personal info and they're good to go.

    4. Re:So, about .50 GBP ... by Anonymous Coward · · Score: 0

      This is one of the reasons why we have GDPR now.
      This breach happened while the older Data Protection Act was still in force, and that was capped at 500000GBP. This fine is half the maximum size because it didn't contain any of the most sensitive record types (medical, bank account numbers etc).

      As companies got bigger, the cost of looking after data properly became more than the biggest possible fine. At that point it'd be negligent to the shareholders to spend on protection instead of fines.

    5. Re:So, about .50 GBP ... by mjwx · · Score: 1

      ... per incident.

      That's the damages? Seriously?

      The problem is if the UK or EU tries to fine them real money, Americans will get upset and cry that the evil Europeans are trying to punish American businesses.

      Then they go on about some fantasy about what would happen if they picked up sticks and left... Which wont happen, the fantasy or the companies leaving.

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      Calling someone a "hater" only means you can not rationally rebut their argument.
    6. Re:So, about .50 GBP ... by CaptainDork · · Score: 1

      I have long felt that the EU should have kicked out the greedy sumbitches, opting to fabricate homegrown solutions.

      A clever strategy would to wrap it, as the US is doing, in the "national security," blanket.

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      It little behooves the best of us to comment on the rest of us.
    7. Re:So, about .50 GBP ... by Anonymous Coward · · Score: 0

      Individuals still have a moral and legal obligation to act ethically regardless of their other obligations towards shareholders. Saying, "Well it's cheaper to pay the fines than to prevent harm," is simply an attempt to waive the ethical obligation not to harm other people, which can't be done. Saying, "They have a duty to their shareholders" is itself a misunderstanding of how duty works.

      If you, as CEO, tell your shareholders "We did not do actions X Y and Z this quarter because it would have caused harm to 500,000 indiviudals, even though we could have made an extra $750,000 if we had harmed those individuals,"" most shareholders will be fine with that. Even if they tell you, "Do this unethical and illegal action or we'll fire you," you still have an ethical and legal obligation to tell them to take a hike, even if that means they do fire you and find someone willing to break the law on their behalf.

    8. Re:So, about .50 GBP ... by Anonymous Coward · · Score: 0

      Under old data protection legislation, the absolute maximum penalty that could be issued was £500k, and that was only applicable where the data was highly sensitive (e.g. health data, credit records, etc.). Under all other circumstances, the maximum penalty is £250k.

      Things have changed under new regulations. In this case for low sensitivity data breaches, the maximum penalty is 2% of global gross income, or £10 million (which ever is greater). For highly sensitive data, it is 4% of global gross income or £20 million (whichever is greater).

  4. That's a reasonable fine for my data by WillAffleckUW · · Score: 1

    But what about all the other users?

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  5. Massively cheaper than actual security by gweihir · · Score: 2

    Having some experience with large-corporation implementation of security mechanisms, I would guess this fine is at the very least 10x cheaper than what implementation of actual security would have cost. May as well be 100x or even 1000x. As long as this is the utterly pathetic and laughable reaction to a massive data breach caused by extremely bad security, nothing will change.

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  6. Might want to check out some of the newest securit by raymorris · · Score: 1

    Based on the higher end you suggested, I wonder if you've looked at some of the newer security solutions that have come out in the last few years. As certain types of security solutions have been scaled, companies like Alert Logic now offer solutions at perhaps 1% of what similar things would have cost a few years ago.

  7. You get what you pay for by schwit1 · · Score: 1

    I've got a bridge to sell you if you were stupid enough to use a free service AND expect perfect security.

    1. Re:You get what you pay for by hyades1 · · Score: 1

      And I've got a brand new word for you. "Egregious". You can look it up, if you like. Maybe you'll even be clever enough to figure out what it has to do with a corporation that makes a good buck selling SOME of your information, while implying through word and deed that the data you provide in return for its services will be respected.

      Say it with me: "Egregious".

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  8. Re:Might want to check out some of the newest secu by gweihir · · Score: 1

    The higher end is for full custom, because nothing that fits is on the market. Also, remember Yahoo's size.

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    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  9. Yahoo, Consider Yourself Lucky by Anonymous Coward · · Score: 0

    If this had happened after GDPR you'd be well and truly fucked.

  10. $355 total (most basic mom&pop security checkl by raymorris · · Score: 1

    We have several Fortune 50 customers, companies as big as Yahoo or bigger. Most of their security needs aren't that special. Securing a database isn't much different whether it has a 1,000 records or 100 million records. All the companies have their corporate email system, VPN, etc, that all need pretty much the same security treatment. The custom part is identifying the critical assets, a topic I shall return to shortly.

    Several years ago, I owned a security company which specialized in serving VERY small web companies, 20 employees or fewer. For $250 we'd go through a checklist of basic, important things like making sure passwords were stored as a salted hash, not plaintext. If we found you were not using salted SHA-1 or better*, we had a simple solution. We had a little module that integrated with most popular software to use strong encryption. The cost was $35. To instead add our password hash function to your custom-written software, the cost would be closer to $70. We also had code to convert old, unsalted hashes to salted, or weak hashes to strong.** Another $35 for that.

    That $250 checklist certainly didn't cover everything a company like Yahoo should do! It DID, however, cover "does your database use strong salted hashes for passwords?". It would have identified the problem that took down Yahoo, for $250. The cost to look at the password column was the same whether there are 200 users or 2 million users - either way we're just checking to see how the passwords are stored, which is generally going to be the same for all users. After $250 to find the problem with the most basic of security checks, our standard book rate to fix the problem Yahoo had, in the "deluxe", most expensive way, was $105. So $355 total to find and fix that most obvious problem. Of course since it's Yahoo and they would probably have a lot of bureaucracy to deal with maybe we'd charge them ten times as much, $3,550.

    I'm totally serious, that's one of the 40 or so items we checked, for $250. Any of the 250,000 mom & mom web sites displaying "Security by Strongbox (tm)" has taken care of that, so they don't have the major, obvious security problem that was the Yahoo debacle.

    * We'd now use something stronger.
    ** You might think it's impossible to convert salted MD5 hashes to SHA-256. I'll be impressed if you figure out the trick I used to do it.

    Thinking about Yahoo's cost for security, vs fines and penalities, this fine is UK only. They had at least an $80 million class action settlement and $35 million fine in the US, and probably other penalties that I don't know offhand, then this $350K or whatever additional for the UK. If UK is fining them, I imagine other countries may as well. So the size of Yahoo as a whole shouldn't be compared to this one small part of the fines. The comparison would be:
    I'd they had spent $115 million (or whatever) on securing their operations generally, which are based in the US, how much EXTRA would securing their UK operations cost?

    Most of their security needs would be served just fine by off-the-shelf solutions. Their Active Directory server needs to be secured the same way every other company needs to secure their Active Directory. Nothing special about Yahoo's VPN for travelling workers, it's a standard set of Cisco ASAs just like every other company. They need to turn off TLS 1.0 just like everyone else. They need to install the same OS security updates on all their servers and workstations just like everyone else. Whether their database has 40 million records or 4,000 records, the cost to check the security of the database server and the schema isn't much different. (We just have to check that all the servers in the cluster have the same configuration)..We have software that checks all these things. Given scale, it costs pennies per asset to scan them. My current company checks for over 100,000 different vulnerabilities, and a company with operations the size of Yahoo would cost a few thousand per month, if that much. (If you look at Yahoo's market c

  11. Re:$355 total (most basic mom&pop security che by gweihir · · Score: 1

    I do not dispute that where it can be done, a generic approach may be entirely appropriate. But there are IT landscapes were that is not possible and you need to go full custom at least in part. My estimate was for them and it does include costs on the customer side, not just what they pay to an external party.

    As to salted MD5 to SHA-256, that is actually pretty simple in practice: If you need the protection now, you put both on top of each other, i.e. SHA-256(salt_new, MD5(salt, pwd)). The first time a customer logs in and you actually (temporarily) have the password, you strip out the MD5 layer. This is just a quick&dirty approach, better ones may exist and there may be specific constraints from the customer that require a modified or different approach.

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    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  12. Chump change by XSportSeeker · · Score: 1

    A sub billion fine on a case like this is insulting, useless, and only incentivizes other companies to follow similar non-existant security practices.
    Lets remember this wasn't only a small leak, but one of the biggest multiple leaks where the company purposedly hid for years the whole thing, allowed for it to happen multiple times over, and was unapologetic the entire time.

  13. Re:$355 total (most basic mom&pop security che by Anonymous Coward · · Score: 0

    Yahoo can not be fined for stupidity.right from day one this was USA hacker paradise.
    Boys with all the toys to flatten Yahoo servers
    Its still possible these days to walk up to a computer a flatten a website server in less than one minute ,,get in big trouble if caught some people do not care normally under age kids

    .

  14. Re:$355 total (most basic mom&pop security che by Anonymous Coward · · Score: 0

    >you need to go full custom at least in part.

    Huh? What does that even mean?

  15. obComment by cascadingstylesheet · · Score: 1

    One Meeeelllion dollars!

  16. Just because it's impossible doesn't mean we don't by raymorris · · Score: 1

    That's cool you saw right away (or knew) *both* ways to convert. When I pose that question, a couple of people have thought of sha(md5(P)), but everyone insists it's impossible to actually convert md5(P) to sha(P). The more they know about cryptography, the more certain they are that it's impossible.

    That's the thing about security - just because something is mathematically impossible doesn't mean we can't do it, or an attacker can't do it. Heat death of the universe blah blah, a well-worded phone call beats fundamental physics most of the time.

  17. Value? by h8sg8s · · Score: 1

    $334k is about the current value of Yahoo! Wonder if Verizon has buyer's remorse yet?

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