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privacy protections, and data breaches are often privacy violations. |
The Sony Breach |
Sony was planning to release a new movie, a comedy called The Interview |
that mocked North Korean leader Kim Jong-un. Apparently, in retaliation |
for the movie, North Korean hackers launched a major attack against Sony. |
The hackers were able to break in because they were able to steal the |
login credentials of a Sony systems administrator through a spear phishing |
attack. The hacker spent several months exploring Sony’s computer system |
trying to find ways to wreak the most havoc.69 |
On Friday, November 21, 2014, some Sony executives received an email |
from a group calling itself “God’sApstls” that demanded “monetary |
compensation” or else Sony “[would] be bombarded as a whole.” The spam |
filters picked it up or it went otherwise unread. |
The first Sony employee to log in after that weekend must have received |
quite the shock. A blood-red skeleton with razor fangs had conquered every |
single computer on the Sony lot, rendering the machines useless and |
sparing neither interns nor executives. Superimposed in blocky crimson |
letters were the words “HACKED BY THE #GOP,” along with a demand to |
“obey” and five links that led to repositories of internal Sony records. Also |
included was a deadline of 11 p.m. that very night, even though GOP’s |
demands were ambiguous.70 |
Sony hoped to keep the matter quiet, but an anonymous person posted a |
picture of the garish lockdown interface on Reddit, eliciting a flurry of |
media attention.71 Still, at the time, Sony officials thought there wasn’t |
much to worry about. Employees returned to their work. One Sony |
supervisor called it “a one-day problem.”72 No one imagined the immensity |
of the storm to come. |
To their dismay, Sony officials learned that the hackers hadn’t just |
vandalized them; the hackers had wreaked near total destruction. “Wiper” |
malware, known as “Destover” or “Wipall,” erased everything stored on |
3,262 of the company’s 6,797 personal computers and 837 of its 1,555 |
servers, mixing in a “special deleting algorithm that overwrote the data |
seven different ways,” before disabling the computers’ boot software.73 |
The destruction wasn’t even the worst part. The hackers had created a |
wound, but they wanted to maim. The hackers thus took a turn in the |
direction of privacy and transformed a bad breach into an utter catastrophe. |
On November 24, the GOP posted four unreleased Sony data files to file- |
sharing sites. A few days later, several journalists received an email |
purporting to be from “the boss of G.O.P.” with links to the anonymous |
sharing site Pastebin, along with a password. The links led to a neatly |
organized set of folders containing over 26 gigabytes of unencrypted Sony |
personnel data, including almost 50,000 unique Social Security Numbers |
and detailed biographical information, compensation details, work histories, |
and confidential medical information.74 They also spread the leaked details |
to media outlets such as Gawker, BuzzFeed, and The Verge. |
The first news reports hit the Internet on December 1. Sony employees |
began “coming to work afraid,” as multiple reports of attempted identity |
theft poured in.75 |
The GOP dumped more files over several days in early December |
2014.76 On December 8, the GOP finally articulated a motive, linking their |
actions to Sony’s forthcoming The Interview, which the group called “the |
movie of terrorism which can break the regional peace and cause the War!” |
The GOP called for Sony to pull the movie or face further reprisals. In |
addition to the note, GOP released another round of leaked information, this |
time the private emails of Sony President Steve Mosko and Sony |
Entertainment executive Amy Pascal. In total, the group leaked over 20,000 |
emails addressing sensitive personal and business issues, as well as |
thousands of stored contact details, many of which included home |
addresses.77 Pascal’s emails, in particular, stirred up a media circus because |
many included insensitive comments about friends, associates, industry |
figures, and even President Obama. |
Additional emails were posted on December 13 and 14, which GOP |
dubbed “Christmas” gifts.78 A final leak on December 16 warned of a |
“bitter fate” for anyone present wherever The Interview was to be screened |
and invoked the September 11 attacks while warning readers to keep their |
distance from screenings and warning those who lived nearby to flee |
altogether. The actual leak consisted of over 12,000 emails and 7,000 |
contacts from the account of Michael Lynton, chairman and CEO of Sony. |
Prior to this leak, Sony had already cancelled several media appearances |
involving the cast of The Interview, as well as most promotional events. |
Upon reading the December 15 warning, Sony immediately provided |
security for the film’s actors and producers. Sony cancelled star Seth |
Rogen’s appearances on late-night programming. Theater chains began to |
pull out of the film’s screening. Sony later issued a press release |
announcing the cancellation of The Interview’s theatrical release—a |
decision that was criticized by many as cowardly. President Obama even |
called this decision “a mistake.”79 |
December 19 brought a final communication from the GOP. In it, the |
group declared that Sony had suffered enough, and that they “lift[ed] the |
ban,” allowing the The Interview to be released provided that Kim Jong- |
Un’s death scene not be “too happy,” and that Sony not “test [them] again.” |
On December 24, on Google’s servers, The Interview received an online |
release, earning a modest $40 million. |
The Sony hack exposed a wealth of embarrassing information about both |
the company and its top executives. Amy Pascal apologized profusely and |
stepped down as co-chairwoman of Sony Pictures Entertainment and |
chairwoman of Sony’s motion picture group. |
At least two former Sony employees brought lawsuits while the leak was |
ongoing, though theirs and many others were later consolidated into a class |
action. The parties reached a settlement, approved in early 2016, which cost |
Sony $15 million. As part of the agreement, Sony also agreed to provide |
identity-theft protection through the end of 2017 and a compensation fund |
for class members who paid to protect themselves out of pocket. |
The Sony breach was so harmful because of its privacy dimensions. This |
is one reason why privacy regulation is so essential to data security; not |
only can privacy regulation help prevent breaches, but it can also help |
lessen the harm that breaches cause. Typically, the privacy harm is felt by |
an organization’s employees and customers. The Sony case is somewhat |
unusual in that the privacy harms were also experienced by upper |
management. |
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