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armor was an external vendor, where the thieves were able to obtain |
network credentials. From there, because of a poorly segmented network, |
the cybercrooks were able to work their way around as if in a giant |
playground.43 |
JP Morgan Chase was also breached, exposing 76 million records in “the |
largest intrusion of an American bank to date.” Hackers broke in with stolen |
login credentials from one employee, then exploited a neglected database |
that hadn’t been upgraded to require two-factor authentication. This simple |
upgrade could have stopped this debacle from happening, but it was |
overlooked. JP Morgan Chase spent $250 million per year on security, but it |
was felled by a small oversight.44 |
Sony Pictures was attacked in retaliation for its upcoming release of a |
comedy about North Korean leader Kim Jong Un. Attackers backed by the |
North Korean government broke in by stealing an administrator’s |
credentials through a phishing scheme.45 On the morning of November 24, |
2014, Sony employees turned on their computers to see a red skeleton and a |
message threatening to release the data publicly.46 The hackers made good |
on their threat, publicly posting private emails of Sony employees, |
including emails by executives, some of whom made insulting comments |
about celebrities and others. |
According to a Symantec report on ransomware, “Between 2013 and |
2014, there was a 250 percent increase in new crypto ransomware families |
on the threat landscape.” As the Symantec report observes: “Never before |
in the history of humankind have people across the world been subjected to |
extortion on a massive scale as they are today.”47 The fact that so many |
companies were being infiltrated led FBI director James Comey to state: |
“There are two kinds of big companies in the United States. There are those |
who’ve been hacked . . . and those who don’t know they’ve been hacked.”48 |
The year 2015 earned the title of “the year of the data breach”—a title |
that nearly every year has earned.49 One study noted: “In 2010, you had a |
one in nine chance of becoming a victim of identity theft after your |
financial or personal information was swiped. Today, your odds have |
increased to one in three.”50 |
The health plan Anthem had a breach of 80 million patient records |
involving very sensitive data. Hackers broke in when one employee clicked |
on a phishing email.51 The breach was noted as the “largest healthcare |
breach in history.”52 On the very same day that Anthem announced its |
breach, Premera Blue Cross discovered it had been hacked, compromising |
11 million records.53 |
Hackers also attacked Ashley Madison, a website for facilitating |
extramarital affairs. They obtained 32 million records and posted them |
online. Although some people had paid a fee to Ashley Madison to delete |
all their data, the company hadn’t done so.54 Ashley Madison also used |
weak encryption to store sensitive data. After the hackers posted the data |
online, several of the people exposed committed suicide.55 |
Experian also announced a major breach involving 15 million people’s |
Social Security Numbers and other personal data. Ironically, the breach was |
announced at the beginning of National Cybersecurity Awareness Month.56 |
In 2016, the total number of records compromised in recorded breaches |
in all years surpassed 6 billion. Bloomberg News proclaimed that 2016 was |
a “record year.”57 Mossack Fonesca, a Panamanian law firm, had a breach |
that involved 11.5 million records of wealthy clients from many countries |
who were seeking to evade taxes. The incident was dubbed the “Panama |
Papers” breach.58 |
In one of the tardiest breach announcements in history, Yahoo |
announced a series of breaches that occurred in 2013 and 2014 involving 3 |
billion records, making this the largest series of breaches in the history of |
humankind. In 2018, the SEC fined Yahoo for covering up the breach for |
several years, failing to inform investors, and not fully investigating the |
breach. The fine is notable for being the SEC’s first fine for failing to |
disclose a data breach, but the fine was just for $35 million, which is low |
considering the egregiousness of Yahoo’s actions.59 |
The ransomware epidemic continued, prompting the FBI to issue a |
warning and request to be informed about new ransomware infections.60 |
Ransomware attacks averaged 4,000 per day. The year began with a 300 |
percent increase in daily ransomware attacks compared to 2015.61 Where |
ransomware attacks previously targeted mainly smaller businesses and |
demanded small ransoms of a few hundred to a few thousand dollars, the |
criminals began to shift to targeting larger organizations and demanding |
higher ransoms. They also attacked hospitals. Hollywood Presbyterian |
Medical Center paid attackers $17,000 in bitcoin in February 2016. By |
2020, ransom demands on hospitals or healthcare entities would top $1 |
million.62 |
While politically motivated hacks—“hacktivism”—gained prominence |
in 2011 with the growth of Anonymous, politically motivated hacks in 2016 |
targeted major parties. Prominent members of the Democratic Party were |
hacked in 2016, including John Podesta, chairman of Hilary Clinton’s |
presidential campaign. Sponsored by the Russian government, hackers sent |
phishing emails to more than 100 members of Clinton’s campaign. When |
the hackers had trouble infiltrating official campaign email accounts, the |
hackers turned to targeting people through their personal email accounts, |
which they used to break in.63 The hacked emails were subsequently |
provided to WikiLeaks, which published 20,000 of the hacked emails. |
In 2017, the story was more of the same. As the Online Trust Alliance |
noted: “Surprising no one, 2017 marked another ‘worst year ever’ in |
personal data breaches and cyber incidents around the world.”64 The total |
all-time number of breaches reported surpassed 5,000 and involved more |
than 7.8 billion records compromised.65 There are 7.6 billion people on |
Earth, so 2017 saw the total number of compromised records surpass the |
total world population. |
Equifax had an enormous breach involving personal data of about 147 |
million people. The breach was caused by hackers who broke in through an |
unpatched software vulnerability.66 Hackers stole data of 50 million riders |
and 7 million drivers from Uber. Uber’s CEO paid the hackers $100,000 to |
keep the incident secret, a cover-up that resulted in his ouster and in |
criminal charges against the chief security officer.67 |
Bloomberg News proclaimed 2018 to be the “year of the data breach.”68 |
Alabama became the final U.S. state to pass a breach notification law.69 The |
General Data Protection Regulation (GDPR) went into effect, resulting in |
data protection authorities all over Europe being overwhelmed with |