Credit Card Breach May Cost Sony $24 Billion

[Azmael Silverlance]

This has been everywhere! Radio news.....its too huge no hacker/thief will use the credit card information at this point. Thats suicide. but shit will go down.
And if the loss of personal data is in fact confirmed i think consumers may still be able to pull off some legal charges and get some $$$!

 

[Svenparty]

Like this will ever happen, I doubt it'll go into millions and I think although Sony Is in a bad situation will find a way to get around it. Raptor Jesus help the hackers who are going to make the Geohot case look like a pushover.

 

[Braedan]

Should Sony face penalties for getting hacked? Maybe. But anyone who would fine the company this much money would be eliminating the jobs of THOUSANDS of innocent people. Think about that before you start saying things like "Down with Sony!"

 

[Treblaine]

Xbox Live and Steam might be unaffected now, but this attack on the PSN proves that such networks are vulnerable.

Xbox Live it's plausible but I'm very confident with Steam's security.

I mean it has been running financial transactions since 2003 and I am very impressed by all the many layers of robust security the servie offers.

It's the little things like if you change your password all your saved card details are reset. That is so handy as if anyone does phish your password and tries to hijack your account then when they try to lock you out they can't use your cards.

Other stuff like Steam Guard and just how they have been such a high profile target to hackers with people connecting via PCs means they must have a robust network.

Sony's fatal mistake seems to be the assumption the PS3 would always remain locked down... till Geo-Hotz cracked it open. Like EVERY consumer device before or since PS3 was released. They get cracked eventually. Sony has a fundamentally flawed ideology of network security, they expect the end elements to be "good" but then trust them too much and one one is crack you have way WAY too open access to the network with trivial barriers after that.

 

[The Red Spy]

all companies that store personal information are required to keep it secret, keep it safe.

[HEADING=3]IS IT SECRET? IS IT SAFE?[/HEADING]

 

[Ironic Pirate]

Shit, this is a bad time to have a PS3. How much you want to bet Microsoft is absolutely ecstatic about this?

Also, my captcha is telling me to find something called a Doriketa. One can only wonder.

 

[Popido]

I wanted them to get hurt and now they are hurt. So Im happy.

 

[.[B@lL15T1C].]

Credit Card Breach May Cost Sony $24 Billion






According to United Kingdom's Data Protection Act, all companies that store personal information are required to keep it secret, keep it safe.


Permalink

LOVE the lord of the rings wink there.

 

[JDKJ]

Credit Card Breach May Cost Sony $24 Billion

Financial analysts have estimated that Sony's possible loss of account information may cost the company billions of dollars in damages.

Sony is not certain that personal credit card information was stolen but admitted such theft was a possibility, but even that may cost the company. The Ponemon Institute, a research firm that studied previous credit card hacks, estimated last year that data breaches involving a nefarious attack - which Sony admitted is the case here - cost an average of $318 per compromised record. With Sony's PlayStation Network consisting of 77 million user-created accounts, it may possibly cost $24.5 for the company to clean up the mess. In addition, Sony may suffer penalties from governments across the globe for failing to protect consumers' personal information, including a £500,000 fine from the U.K.

The Pomenon Institute study referred to does not in any way support a conclusion that "it may possibly cost $24.5 [billion] for [Sony] to clean up the mess." Rather and according to the Pomenon Institute:

"Our current analysis of the actual data breach experiences of 45 U.S. companies from 15 different industry sectors takes into account a wide range of business costs, including expense outlays for detection, escalation, notification, and after the fact (ex-post) response. We also analyze the economic impact of lost or diminished customer trust and confidence, measured by customer churn or turnover rates.

Utilizing activity-based costing, our methods capture information about direct expenses such as engaging forensic experts, outsourced hotline support, free credit monitoring subscriptions, and discounts for future products and services. We also capture indirect costs such as in-house investigations and communication, as well as the extrapolated value of customer loss resulting from turnover or diminished acquisition rates."

Source: http://www.ponemon.org/local/upload/fckjail/generalcontent/18/file/US_Ponemon_CODB_09_012209_sec.pdf

The study doesn't quantify clean up cost alone. It quantifies just about every imaginable cost, both direct and indirect, tangible and intangible, spread out over years.

This isn't the bankruptcy that the article makes it sound like. It's not just clean up costs. It's total costs. Sony can and will easily weather $24 billion IN TOTAL COSTS. TOTAL COSTS. TOTAL COSTS. TOTAL COSTS. TOTAL COSTS.

 

[MrGFunk]

Seriously checking the bank statements for rogue transactions...

Did I really buy all these ipads?

 

[Lusty]

Don't know how they got to $24bn. The closest comparison I can think of is TJX who lost 45m, probably more credit card numbers than Sony had, and that cost them $256m.

 

[erztez]

Should Sony face penalties for getting hacked? Maybe. But anyone who would fine the company this much money would be eliminating the jobs of THOUSANDS of innocent people. Think about that before you start saying things like "Down with Sony!"

Ehm...not to go all Godwin on you...
But that's one of the stupidest arguments I've ever seen in my life.
I don't give a flying fuck about Sony employees.
Why should I?
If they're good, they'll find another job, if they're not good, well, then they can go hungry for all I care.
Corporations cannot be allowed to hold the jobs they create as hostages, they did that in the US and look what's happening there...

Honestly?
I think Sony should be fined to oblivion, if only to shake up the current console market Status Quo.

 

[jakefongloo]

I've never participated in a console war in my life, but I am very glad at this particular moment in time to not be a Sony customer.

Anyone who is, you have my sincest sympathies and I hope nothing bad happens to you.

me=this go slothfulism! (go making-up-words too!)

 

[jakefongloo]

Should Sony face penalties for getting hacked? Maybe. But anyone who would fine the company this much money would be eliminating the jobs of THOUSANDS of innocent people. Think about that before you start saying things like "Down with Sony!"

Ehm...not to go all Godwin on you...
But that's one of the stupidest arguments I've ever seen in my life.
I don't give a flying fuck about Sony employees.
Why should I?
If they're good, they'll find another job, if they're not good, well, then they can go hungry for all I care.
Corporations cannot be allowed to hold the jobs they create as hostages, they did that in the US and look what's happening there...

Honestly?
I think Sony should be fined to oblivion, if only to shake up the current console market Status Quo.

You should get out more if that's the stupidest arguement you've ever heard. Also, I don't know if where you've been lately but getting another job is kinda hard still.

 

[Veloxe]

Shit, this is a bad time to have a PS3. How much you want to bet Microsoft is absolutely ecstatic about this?

I wonder about that. I mean, if I were a multi-billion dollar organization competing with another multi-billion dollar organization and my competitor just had a massive security breach I might be having a nice long chat with the security people about making sure our systems are all nice and up to date...

 

[Braedan]

Should Sony face penalties for getting hacked? Maybe. But anyone who would fine the company this much money would be eliminating the jobs of THOUSANDS of innocent people. Think about that before you start saying things like "Down with Sony!"

Ehm...not to go all Godwin on you...
But that's one of the stupidest arguments I've ever seen in my life.
I don't give a flying fuck about Sony employees.
Why should I?
If they're good, they'll find another job, if they're not good, well, then they can go hungry for all I care.
Corporations cannot be allowed to hold the jobs they create as hostages, they did that in the US and look what's happening there...

Honestly?
I think Sony should be fined to oblivion, if only to shake up the current console market Status Quo.

I never said that there should be no consequences. I also said nothing about the US bailouts. I only said for people to consider the numbers of people who did nothing wrong, before they started yelling "down with Sony!" like I have seen in other threads.

But fine them just to shake things up?
That's one of the stupidest arguments I've ever seen in my life.

 

[JDKJ]

Don't know how they got to $24bn. The closest comparison I can think of is TJX who lost 45m, probably more credit card numbers than Sony had, and that cost them $256m.

Because it is a study spread across 40-odd companies (so it's an average of the costs) and it's not just "clean up" costs. It's total costs (each and every conceivable cost) spread out across several years into the future.

 

[Lvl 64 Klutz]

How about Sony and friends stop with all the press releases about the aftermath on THEIR end, and at least issue ONE statement about what's being done to find and condemn whoever was responsible for the hack? Are national agencies like the FBI getting involved? Are they even conducting an investigation? Do they even really care about finding the culprit and maybe preventing even more malicious attacks on their consumers?

 

[Braedan]

I wanted them to get hurt and now they are hurt. So Im happy.

in all sincerity fuck you, thousands of sony employees and countless first party developers are going to be seriously affected if they don't lose their jobs, this is going to cause MASSIVE damage to the industry regardless of what side you're on

Agreed, even if you hate Sony, do you really want to see the ruin of so many people? I'm by no means a liberal minded person, but willing thousands to be jobless is quite callous.