Incident: Dropbox Data Breach: 68 Million Users' Credentials Compromised in 2012

Published Date: 2016-08-31

Postmortem Analysis
Timeline 1. The software failure incident involving Dropbox happened in mid-2012 [46773, 47049].
System 1. Dropbox's password encryption system using the SHA1 hashing algorithm [46773, 46773] 2. Password reuse by a Dropbox employee from LinkedIn [46773] 3. Lack of two-step verification for Dropbox accounts [46773] 4. Potential password reuse by affected users on other sites [47049]
Responsible Organization 1. The hacker who accessed Dropbox's internal systems in 2012 [46773, 47049] 2. The Dropbox employee who reused a password from LinkedIn, leading to the breach [46773]
Impacted Organization 1. Dropbox users [46773, 47049]
Software Causes 1. The software failure incident in the Dropbox hack was caused by the reuse of a password by a Dropbox employee on LinkedIn, which suffered a breach that revealed the password and allowed hackers to enter Dropbox's corporate network, gaining access to the user database with encrypted passwords [46773]. 2. The incident also involved the exposure of user email addresses and passwords due to the hack, highlighting the importance of strong password practices, two-step authentication, and avoiding password reuse [47049].
Non-software Causes 1. Password reuse by a Dropbox employee on LinkedIn, leading to the initial breach [46773, 47049] 2. Breach on LinkedIn that revealed the password and allowed hackers to enter Dropbox's corporate network [46773]
Impacts 1. Over 68 million Dropbox users' email addresses and passwords were leaked on the internet due to the 2012 hack [46773, 47049]. 2. The breach highlighted the importance of strong password practices, two-step authentication, and avoiding password reuse [46773]. 3. The incident led to Dropbox resetting passwords for all impacted users who hadn't updated their passwords since mid-2012 [47049]. 4. The hack originated from a Dropbox employee reusing a password from LinkedIn, leading to access to the corporate network and user database [46773]. 5. The incident underscored the need for companies to maintain tight security measures to protect user data [46773, 47049].
Preventions 1. Implementing strong password policies and enforcing regular password changes could have prevented the software failure incident. Users should be encouraged to use unique and complex passwords for each account to minimize the impact of password leaks [46773, 47049]. 2. Enabling two-step verification for user accounts could have added an extra layer of security and prevented unauthorized access even if passwords were compromised [46773]. 3. Avoiding password reuse across different accounts could have prevented the incident. In this case, the original breach was due to the reuse of a password from a LinkedIn breach, highlighting the importance of using unique passwords for each account [46773]. 4. Enhancing network security measures to prevent unauthorized access to internal systems could have mitigated the risk of hackers gaining entry to sensitive user data [47049].
Fixes 1. Implementing strong password policies for users, including the use of unique and complex passwords, two-step verification, and avoiding password reuse [46773, 47049]. 2. Enhancing encryption practices by upgrading to more secure standards like bcrypt and ensuring all passwords are properly encrypted and "salted" [46773, 47049]. 3. Conducting regular security audits and monitoring for any unauthorized access to internal systems [47049]. 4. Educating users on the importance of cybersecurity best practices and the risks associated with password reuse [46773, 47049]. 5. Considering the use of password managers to securely store and manage multiple complex passwords [46773].
References 1. Security notification service Leakbase [46773] 2. Independent security researcher Troy Hunt [46773] 3. Have I been pwned? data leak database [46773] 4. Dropbox spokesperson [46773] 5. Motherboard [46773, 47049] 6. Dropbox head of trust Patrick Heim [47049]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident related to the hack of Dropbox's user data in 2012 happened again within the same organization. The incident involved a breach where over 68 million users' email addresses and passwords were leaked on the internet. Dropbox had previously reported a similar breach in 2012 where a collection of user email addresses had been stolen, but not passwords. The recent incident in 2016 revealed that passwords were also compromised, indicating a recurrence of a security breach within the same organization [46773, 47049]. (b) The software failure incident related to the hack of Dropbox's user data in 2012 also had implications for multiple organizations. The original breach at Dropbox was attributed to the reuse of a password by a Dropbox employee that was previously used on LinkedIn, which had also suffered a breach. This chain of events highlights the interconnected nature of security breaches and how a breach in one organization can lead to vulnerabilities in another organization's network. The incident underscores the importance of strong security practices not only for individual users but also for companies storing user data [46773, 47049].
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase is evident in the articles. The incident occurred due to the reuse of a password by a Dropbox employee that was previously used on LinkedIn, which suffered a breach. This password reuse allowed hackers to enter Dropbox's corporate network and gain access to the user database with encrypted passwords [46773, 47049]. (b) The software failure incident related to the operation phase is also highlighted in the articles. Users who had not changed their passwords since 2012 were required to do so by Dropbox to mitigate the impact of the hack. Dropbox emphasized the importance of users not reusing passwords on other sites to protect themselves from potential security breaches [46773, 47049].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident related to the Dropbox hack in 2012 was primarily due to contributing factors that originated from within the system. The breach occurred as a result of a Dropbox employee reusing a password that had been previously compromised in a breach on LinkedIn, allowing hackers to gain access to Dropbox's corporate network and subsequently the user database [46773, 47049]. (b) outside_system: Additionally, the incident also involved contributing factors that originated from outside the system. The initial breach on LinkedIn, where the Dropbox employee's password was compromised, was an external factor that led to the chain of events resulting in the Dropbox hack [46773, 47049].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident occurring due to non-human actions: - The software failure incident in Dropbox was due to a hack where over 68 million users' email addresses and passwords were leaked onto the internet [46773, 47049]. - The original breach was the result of the reuse of a password a Dropbox employee had previously used on LinkedIn, which allowed hackers to enter Dropbox's corporate network and gain access to the user database with encrypted passwords [46773]. - The passwords were encrypted and appeared to be in the process of upgrading the encryption from the SHA1 standard to a more secure standard called bcrypt [46773]. - The breach highlighted the need for tight security practices, such as the use of strong passwords, two-step authentication, and avoiding password reuse [46773]. - The incident also emphasized the importance of companies storing user data securely and the dangers of password reuse and entry into corporate networks [46773]. (b) The software failure incident occurring due to human actions: - The original breach that led to the hack on Dropbox was due to the reuse of a password by a Dropbox employee on LinkedIn, which allowed hackers to access the corporate network [46773]. - Dropbox reset a number of users' passwords at the time of the breach, but the exact number was not disclosed [46773]. - Dropbox head of trust, Patrick Heim, reminded users to consider whether they reused their Dropbox passwords on other accounts, indicating the potential for human actions contributing to the incident [47049].
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to hardware: - The original breach of Dropbox's user data in 2012 was attributed to the reuse of a password by a Dropbox employee that was previously used on LinkedIn, which suffered a breach revealing the password and allowing hackers to enter Dropbox's corporate network [46773]. - The hackers gained access to the user database with encrypted and "salted" passwords after entering Dropbox's corporate network through the compromised password [46773]. (b) The software failure incident related to software: - The software failure incident in Dropbox's case was primarily due to the reuse of a password by an employee, which allowed hackers to gain access to the user database [46773]. - The incident also highlighted the importance of user security practices such as using strong passwords, enabling two-step verification, and avoiding password reuse [46773]. - Dropbox had encrypted the passwords using the SHA1 standard and was in the process of upgrading to a more secure standard called bcrypt, indicating a software-related security measure [46773]. - The use of a password manager was recommended by security experts to enhance security, emphasizing the software aspect of password management [46773]. - The incident also underscored the importance of companies storing user data to maintain tight security measures to prevent unauthorized access [46773].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident related to the Dropbox hack in 2012 was malicious in nature. The incident involved a hacker gaining unauthorized access to Dropbox's internal systems and stealing a list of user email accounts along with passwords [46773, 47049]. The hacker was able to enter Dropbox's corporate network by exploiting a password reuse issue from a Dropbox employee's LinkedIn account, which had also been breached. This breach led to the exposure of user passwords, demonstrating malicious intent to harm the system and compromise user data.
Intent (Poor/Accidental Decisions) poor_decisions, accidental_decisions (a) The software failure incident related to the Dropbox hack in 2012 can be attributed to poor_decisions. The incident occurred due to the reuse of a password by a Dropbox employee that was previously used on LinkedIn, which had suffered a breach. This password reuse allowed hackers to enter Dropbox's corporate network and gain access to the user database with encrypted passwords [46773, 47049]. Additionally, the incident highlighted the importance of tight security practices, such as using strong passwords, two-step authentication, and avoiding password reuse, both for users and companies storing user data [46773]. (b) The software failure incident related to the Dropbox hack in 2012 can also be linked to accidental_decisions. Dropbox did not initially report that passwords had been stolen in the 2012 attack, only mentioning the theft of email addresses. It was later discovered that passwords were also compromised, leading to the need for a password reset for all impacted users who hadn't changed their passwords since 2012 [46773, 47049]. This oversight in not disclosing the full extent of the breach initially could be considered an accidental decision that contributed to the incident.
Capability (Incompetence/Accidental) development_incompetence (a) The software failure incident related to development incompetence is evident in the Dropbox hack incident. The breach occurred due to the reuse of a password by a Dropbox employee that was previously used on LinkedIn, which had suffered a breach revealing the password. This password reuse allowed hackers to enter Dropbox's corporate network and gain access to the user database [46773]. (b) The software failure incident related to accidental factors is seen in the accidental exposure of user data due to the hack on Dropbox. The company initially reported that only email addresses were stolen, not passwords. However, it was later discovered that passwords were also leaked, leading to the need for a password reset for impacted users [46773, 47049].
Duration temporary The software failure incident related to the Dropbox hack in 2012 can be categorized as a temporary failure. This incident was temporary because it occurred due to specific circumstances, namely the reuse of a password by a Dropbox employee that had been compromised in a breach on LinkedIn. The breach allowed hackers to access Dropbox's corporate network and subsequently the user database containing encrypted passwords [46773, 47049].
Behaviour value, other (a) crash: The software failure incident in the articles does not involve a crash where the system loses state and does not perform any of its intended functions [46773, 47049]. (b) omission: The incident does not involve the system omitting to perform its intended functions at an instance(s) [46773, 47049]. (c) timing: The failure is not related to the system performing its intended functions correctly but too late or too early [46773, 47049]. (d) value: The software failure incident is related to the system performing its intended functions incorrectly, as it led to the leaking of over 68 million users' email addresses and passwords [46773, 47049]. (e) byzantine: The incident does not involve the system behaving erroneously with inconsistent responses and interactions [46773, 47049]. (f) other: The software failure incident also involves the reuse of a password by a Dropbox employee on LinkedIn, which ultimately led to the breach and access to the user database [46773].

IoT System Layer

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

Other Details

Category Option Rationale
Consequence property, theoretical_consequence (d) property: People's material goods, money, or data was impacted due to the software failure The software failure incident involving Dropbox being hacked in 2012 resulted in the leak of over 68 million users' email addresses and passwords [46773, 47049]. This breach led to the exposure of sensitive user data, potentially compromising the security and privacy of the affected individuals. Additionally, the incident highlighted the importance of strong password practices, two-step verification, and the risks associated with password reuse [46773]. The breach also emphasized the need for companies to prioritize tight security measures to protect user data [46773].
Domain information, finance, other (a) The software failure incident reported in the articles is related to the information industry, specifically the cloud storage service provided by Dropbox. The incident involved a hack in 2012 where over 68 million users' email addresses and passwords were leaked, highlighting the importance of data security in the information industry [46773, 47049]. (h) The incident also has implications for the finance industry as it involves the security of user accounts and passwords, which are crucial for protecting financial information and transactions. Dropbox users were advised to consider whether they had reused their passwords on other sites, emphasizing the importance of securing financial data [46773, 47049]. (m) The software failure incident could also be categorized under the "other" industry as it pertains to the broader realm of cybersecurity and data protection. The incident serves as a reminder of the risks associated with cyber threats and the need for robust security measures across various industries and sectors [46773, 47049].

Sources

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