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The computer virus Stuxnet showed just how vulnerable technical |
systems were to attack. The virus caused real world physical effects when it |
disrupted the centrifuges in an Iranian uranium enrichment plant.18 |
Many pundits proclaimed 2011 as the “Year of the Data Breach.”19 The |
loose collectives Anonymous and LulzSec introduced the world to |
“hacktivism,” while more profit-minded hackers set their sights on |
healthcare. Health data breaches increased by 97 percent in 2011.20 |
Even data security firms weren’t immune from breaches. RSA Security, |
which provided security to 40 million businesses, was hacked. A hacker |
sent phishing emails with the subject “2011 Recruitment Plan” to a few |
employees. The spam filter caught the email, but one employee retrieved it |
from the spam folder and clicked on the attached Excel document, infecting |
the system with malware.21 The malware enabled the hacker to access the |
system and obtain credentials to break into other systems. |
One fateful click also resulted in one of the largest breaches of the year. |
At Epsilon, an email marketing company, an employee clicked on a |
phishing email, enabling hackers to access 60 million records.22 The cost of |
the breach was estimated to be in the billions.23 |
Fueling the rise of data breaches, illicit markets for stolen data began to |
emerge. Criminals could sell their spoils of personal data, and other |
criminals could buy key pieces of data to help them plunder. The personal |
data peddled in this crooked bazaar could be used for answering password |
recovery questions to steal passwords or for filling out fraudulent credit |
card applications. Fraudsters could also purchase user passwords from |
previously hacked sites; these passwords are valuable because people often |
use the same password on multiple accounts. Markets in stolen data thus |
became a source of revenue for criminals, as well as a place for criminals to |
acquire data to help them hack other companies. |
The most prominent of these underground markets was the Silk Road. |
Created in 2011 by Ross Ulbricht, a recent college graduate who longed to |
be an entrepreneur, Silk Road was an online marketplace that existed in the |
nether regions of cyberspace colloquially known as the “Dark Web.” The |
Dark Web originated in the early 2000s. Because users could remain |
anonymous and be difficult to trace, the Dark Web became a virtual bazaar |
for hacked personal data.24 Silk Road quickly grew to become a major |
marketplace in the Dark Web. |
Donning the pseudonym Dread Pirate Roberts (from the book and |
movie, The Princess Bride), Ulbricht hoped to develop Silk Road into a |
libertarian utopia beyond the restrictive authority of governments.25 Silk |
Road was made possible by the rise of cryptocurrency, such as Bitcoin, |
which enabled financial transactions that could be nearly impossible to |
trace. |
Silk Road quickly became a cesspool for drug trafficking, murder-for- |
hire, and other illegal activities. People could even hire hackers to hack for |
them.26 The “Hacking Pack” was also for sale, which contained more than |
100 hacking tools and software programs.27 |
At one point, a Silk Road user was able to figure out the identities of |
other Silk Road users and started to blackmail Ulbricht by threatening to |
release the names publicly. Ulbricht reached out to another Silk Road user |
to kill the blackmailer.28 |
Ultimately, Ulbricht was caught, convicted, and sentenced to a double |
life sentence without the possibility of parole. Silk Road was shut down. |
But the Dark Web is a much vaster place, and new illicit marketplaces have |
emerged where hackers can readily sell the personal data they plunder. |
Figure 2.1 |
In 2012, breaches continued at a torrid pace. VentureBeat proclaimed |
2012 to be a “big, bad year for online security breaches.”29 Hackers broke |
into LinkedIn, accessed its user passwords, and posted 6.5 million of them |
on a hacker forum. The passwords were not sufficiently encrypted, and |
many were cracked quickly.30 Not much happened afterwards, so the |
damage appeared to be small, but four years later, 117 million LinkedIn |
passwords suddenly appeared online.31 |
Later in 2012, Dropbox was hacked, resulting in a breach of more than |
68 million user login credentials. The breach was actually a downstream |
effect of the LinkedIn breach. A Dropbox employee was using the same |
password from LinkedIn for his workplace Dropbox account. Armed with |
the password from the LinkedIn breach, hackers broke into Dropbox’s |
network through this employee account.32 |
Ransomware began to flourish in 2012. Ransomware is malware that |
encrypts data on a computer system or device. The victim must pay a |
ransom to get the key to decrypt (unencrypt) the data. Originating in 1989, |
ransomware suddenly escalated from an obscure occurrence to one of the |
leading threats online.33 |
Figure 2.2 |
PC World awarded 2013 with the title of the “Year of the Personal Data |
Breach.”34 Symantec upped the ante and gave this year the title of “Year of |
the Mega Data Breach.”35 According to Symantec, “Attacks against |
businesses of all sizes grew, with an overall increase of 91 percent from |
2012.”36 Malware and malicious apps for mobile devices grew substantially |
in 2013. Ransomware grew like a weed, with a 500 percent increase from |
2012.37 |
Target was one of the biggest and most notable breaches of the year, |
involving 110 million records. Hackers stole login information of 38 |
million people from Adobe, including passwords and credit card data. Later, |
an enormous file was posted anonymously online that included login |
credentials of more than 150 million accounts.38 Hackers broke into a |
backup server with inadequate protection because the same encryption key |
was used for all passwords. Adobe was planning to fix the issue, but it |
never got around to it.39 |
In 2014, many media entities proclaimed the year to be the “Year of the |
Data Breach.”40 Hackers released hundreds of private, often nude, photos of |
women celebrities online, demonstrating that breaches can be acutely |
harmful and reflective of the gendered Internet attacks on women.41 Two |
more states passed breach notification laws, but the breaches kept coming.42 |
One of the most notable breaches announced in 2014 was the Home |
Depot breach. Criminals remotely stole payment card data from self- |
checkout kiosks for about half a year until Home Depot discovered the |
activity. As with many other breaches, the initial hole in Home Depot’s |