Incident: Security Flaws in CloudPets Toy Compromise Children's Privacy.

Published Date: 2018-06-05

Postmortem Analysis
Timeline 1. The software failure incident involving CloudPets happened in 2017 [73183].
System 1. CloudPets talking toy by Spiral Toys 2. CloudPets' database security 3. CloudPets' Bluetooth vulnerabilities 4. CloudPets' mobile app 5. CloudPets' firmware installation process
Responsible Organization 1. Hackers accessed CloudPets' database, causing the software failure incident [73183]. 2. Spiral Toys, the manufacturer of CloudPets, was responsible for the security flaws and vulnerabilities in the smart toy [73183].
Impacted Organization 1. Children and their privacy were impacted by the software failure incident with CloudPets [73183].
Software Causes 1. Lack of security measures in the CloudPets smart toy, allowing hackers to access the database and hold sensitive information for ransom [73183]. 2. Unaddressed vulnerabilities in CloudPets' Bluetooth technology, which were first demonstrated more than a year ago and still remained open [73183]. 3. Outdated mobile app versions for CloudPets on both iOS and Android platforms, with the last updates being in May 2017 and January 2018 respectively [73183]. 4. Failure to respond to security concerns and attack reports by the company behind CloudPets, Spiral Toys, indicating a lack of care towards user security and privacy [73183].
Non-software Causes 1. Lack of proper security measures in the design and production of the CloudPets toy, making it vulnerable to hacking [73183]. 2. Failure to respond to security vulnerabilities and attack reports by the company, Spiral Toys [73183]. 3. Inadequate updates and maintenance of the CloudPets mobile apps, leaving them vulnerable to exploitation [73183].
Impacts 1. The software failure incident involving CloudPets, a smart toy, led to the compromise of sensitive data such as email addresses, passwords, and voice recordings from children, affecting more than 800,000 people [73183]. 2. The incident raised significant privacy and security concerns for parents regarding connected toys for children, highlighting the risks associated with such devices [73183]. 3. The vulnerabilities in CloudPets' security, including open Bluetooth vulnerabilities and the ability for potential hackers to install custom firmware, exposed users to potential malicious actions and data breaches [73183]. 4. The failure incident resulted in Amazon pulling CloudPets from its online store, with Walmart and Target also ceasing sales of the toy, indicating a loss of sales and reputation for the product [73183].
Preventions 1. Implementing robust security measures during the development phase, such as secure coding practices, regular security audits, and penetration testing to identify and address vulnerabilities [73183]. 2. Providing timely security updates and patches to address any identified vulnerabilities in the software [73183]. 3. Conducting thorough security assessments and audits of third-party components or services used in the software to ensure they meet security standards [73183]. 4. Ensuring strong encryption protocols are used to protect sensitive data, such as voice recordings and personal information, stored or transmitted by the software [73183]. 5. Following best practices for secure communication protocols, such as Bluetooth, to prevent unauthorized access to the software or connected devices [73183].
Fixes 1. Implementing robust security measures such as encryption and secure authentication protocols to protect user data [73183]. 2. Regularly updating software and firmware to patch vulnerabilities and enhance security [73183]. 3. Conducting thorough security audits and testing by cybersecurity experts to identify and address potential weaknesses [73183]. 4. Ensuring prompt and effective response to security reports and taking proactive steps to mitigate risks [73183]. 5. Establishing strict guidelines and regulations for the development and sale of connected devices, especially those targeted at children, to safeguard privacy and security [73183].
References 1. Researchers at Mozilla [73183] 2. Cybersecurity research firm Cure53 [73183]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident related to security flaws and vulnerabilities in connected toys like CloudPets has happened before with Amazon. In the past, Amazon suspended the sale of Blu phones due to spyware found on the devices [73183]. (b) The incident involving security vulnerabilities in connected toys is not unique to a single organization. For example, the toy "My Friend Cayla" also faced privacy concerns and was banned in Germany for violating privacy rules by recording conversations without parental consent [73183]. This indicates that multiple organizations have faced similar issues with connected toys and smart devices.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be seen in the case of the CloudPets smart toy. Researchers found multiple security flaws in the design of the toy, including vulnerabilities in its Bluetooth connection and mobile app. These design flaws allowed hackers to access the toy's database, containing sensitive information such as email addresses, passwords, and voice recordings from children. Additionally, the toy's mobile app referred users to a website that was for sale, potentially exposing users to online scams [73183]. (b) The software failure incident related to the operation phase can be attributed to the lack of security updates and measures in place for the CloudPets toy. Despite the initial breach in 2017, where hackers accessed sensitive data from the toy's database, the company behind CloudPets, Spiral Toys, did not address the security vulnerabilities. The researchers noted that the toy's apps had not been updated for a significant period, leaving the toy open to potential attacks and exploitation by cybercriminals [73183].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident related to the CloudPets smart toy was primarily due to security flaws and vulnerabilities within the system itself. Researchers found multiple vulnerabilities in the CloudPets toy, including issues with Bluetooth security, database access, and the mobile app. These internal system weaknesses allowed hackers to access sensitive data such as email addresses, passwords, and voice recordings of children. Additionally, the lack of security checks in the toy's firmware installation process made it possible for potential hackers to take control of the toy and intercept data passing through it [73183]. (b) outside_system: The software failure incident also involved contributing factors that originated from outside the system. For example, the incident highlighted the broader issue of security risks associated with connected devices and the Internet of Things (IoT). The vulnerabilities in the CloudPets toy were exacerbated by factors such as default passwords, lack of security updates from developers, and the potential for malicious redirection of the toy's mobile app to a domain that was for sale and could be exploited by criminals in online scams. These external factors, combined with the internal vulnerabilities of the toy, contributed to the overall software failure incident [73183].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident related to non-human actions in this case is the security flaws and vulnerabilities found in the CloudPets smart toy. Researchers discovered that the toy was riddled with security flaws, including Bluetooth vulnerabilities that were still open even after a previous breach in 2017 [73183]. The vulnerabilities allowed hackers to access the toy's database containing sensitive information such as email addresses, passwords, and voice recordings from children. Additionally, the CloudPets mobile app referred users to a website that was for sale, posing a potential risk for online scams [73183]. (b) The software failure incident related to human actions in this case involves the lack of proper security measures and updates by the company behind CloudPets, Spiral Toys. Despite the previous breach in 2017, the researchers found that the toy's security standards were not met, and the company did not respond to reports of vulnerabilities. Furthermore, the researchers criticized Spiral Toys for not caring about their users' security and privacy being violated and not making any effort to address the issues [73183].
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to hardware: - The article reports that the smart toy CloudPets, which was found to have security flaws and vulnerabilities, is a talking toy that is connected online and uses voice recordings and an online app through Bluetooth [73183]. - Hackers were able to access CloudPets' database, containing email addresses, passwords, and voice recordings from children, due to vulnerabilities in the toy's Bluetooth connection [73183]. - Researchers found that CloudPets had a vulnerability that allowed potential hackers to install custom firmware to the toy without any security checks, potentially compromising the toy and any data passing through it [73183]. (b) The software failure incident related to software: - The article mentions that researchers found new vulnerabilities on CloudPets, indicating that the software of the toy had security flaws [73183]. - CloudPets' mobile app was found to refer users to a website that is currently for sale and could be redirected by potential criminals in online scams, highlighting a software-related vulnerability [73183]. - Researchers concluded that CloudPets did not meet security standards and that the company behind the toy did not respond to reports of security issues, indicating a lack of attention to software security [73183].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident related to the CloudPets smart toy can be categorized as malicious. Hackers were able to access CloudPets' database, containing sensitive information such as email addresses, passwords, and voice recordings from children, which they held for ransom at least twice [73183]. Additionally, researchers found that CloudPets had vulnerabilities that could allow potential hackers to install custom firmware to the toy without any security checks, potentially giving them control over the toy and any data passing through it [73183]. These actions demonstrate malicious intent to exploit the security flaws in the software for personal gain or harm.
Intent (Poor/Accidental Decisions) poor_decisions (a) The software failure incident related to the CloudPets smart toy can be attributed to poor decisions made by the company. The incident involved multiple security flaws in the toy, including vulnerabilities in its Bluetooth connection and mobile app, as well as a lack of security checks to prevent the installation of custom firmware by potential hackers [73183]. These poor decisions by the company led to the compromise of sensitive data, such as email addresses, passwords, and voice recordings of children, affecting over 800,000 people. Additionally, the lack of response from the company to address security concerns and the outdated app versions further highlight the poor decisions that contributed to the software failure incident.
Capability (Incompetence/Accidental) development_incompetence (a) The software failure incident related to development incompetence is evident in the case of the CloudPets smart toy. Researchers found multiple security flaws in the toy, including vulnerabilities in its Bluetooth connection and mobile app, as well as the ability for potential hackers to install custom firmware without security checks [73183]. (b) The software failure incident related to accidental factors is highlighted by the fact that hackers were able to access CloudPets' database in 2017, containing sensitive information such as email addresses, passwords, and voice recordings from children. This breach occurred due to the initial security vulnerabilities in the toy, which cybercriminals exploited for ransom [73183].
Duration permanent, temporary (a) The software failure incident related to the CloudPets smart toy can be considered as a permanent failure. The incident involved multiple security flaws and vulnerabilities that were not adequately addressed by the company even after being initially breached in 2017. Researchers found that the toy's Bluetooth vulnerabilities, which were first demonstrated more than a year ago, were still open [73183]. Additionally, the company did not respond to well-meaning attack reports and did not make efforts to enhance the security and privacy of its users, indicating a lack of concern for addressing the underlying issues [73183]. (b) The software failure incident can also be seen as a temporary failure in the sense that the vulnerabilities and flaws were not inherent to the design of the toy but were introduced by specific circumstances such as inadequate security measures and lack of updates. The incident could have been temporary if the company had taken prompt action to address the vulnerabilities and enhance the security of the product. However, the failure persisted over time due to the company's negligence and lack of response to security concerns raised by researchers [73183].
Behaviour crash, omission, value, other (a) crash: The software failure incident related to the CloudPets smart toy involved a crash as hackers were able to access CloudPets' database, containing sensitive information such as email addresses, passwords, and voice recordings from children. This breach led to cybercriminals holding the data for ransom at least twice, affecting more than 800,000 people [73183]. (b) omission: The incident also involved omission as the toy "My Friend Cayla" violated privacy rules by recording conversations without parental consent, leading to Germany banning the doll and asking parents who still owned it to destroy it. This omission of obtaining proper consent from parents resulted in a privacy violation [73183]. (c) timing: There is no specific mention of a timing-related failure in the provided article. (d) value: The software failure incident related to CloudPets falls under the category of a value failure as hackers were able to access sensitive data from the toy's database, including email addresses, passwords, and voice recordings, which were then held for ransom [73183]. (e) byzantine: The incident did not exhibit characteristics of a byzantine failure. (f) other: The software failure incident also involved a security flaw where potential hackers could install custom firmware to the toy without any security checks, allowing them to take control of the toy and any data passing through it. This behavior of allowing unauthorized installation of custom firmware can be categorized as an "other" behavior in the context of software failure incidents [73183].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, non-human, theoretical_consequence (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident involving the CloudPets smart toy, which was riddled with security flaws, led to a breach where hackers were able to access CloudPets' database containing email addresses, passwords, and voice recordings from children. The cybercriminals held this data for ransom at least twice, affecting more than 800,000 people [73183]. Additionally, the researchers found that CloudPets had vulnerabilities that could allow potential hackers to install custom firmware to the toy without any security checks, potentially enabling them to take control of the toy and any data passing through it [73183].
Domain information, manufacturing, entertainment (a) The failed system in this incident is related to the production and distribution of information. The CloudPets smart toy, manufactured by Spiral Toys, is a talking toy that is connected online, uses voice recordings, and an online app through Bluetooth. The toy's security flaws allowed hackers to access its database, containing email addresses, passwords, and voice recordings from children, which cybercriminals held for ransom at least twice, affecting more than 800,000 people [73183]. The incident highlights the privacy and security concerns associated with connected toys that collect and transmit personal information.

Sources

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