Incident: Data Breach at Zappos Exposing 24 Million Customer Accounts

Published Date: 2012-01-16

Postmortem Analysis
Timeline 1. The software failure incident at Zappos happened in January 2012. [9949, 9604, 9615]
System 1. Zappos' internal network and systems through one of their servers in Kentucky [9949, 9604, 9615] 2. Zappos' database security measures that allowed hackers to gain unauthorized access to customer account information [9949, 9604, 9615]
Responsible Organization 1. Hackers accessed Zappos' network, causing the software failure incident [9949, 9604, 9615].
Impacted Organization 1. Zappos - 24 million customer accounts were exposed to cyberattackers [9949, 9604, 9615] 2. Customers of Zappos and its discount shoe store 6pm.com - Their names, email addresses, addresses, phone numbers, and partial credit card numbers were compromised [9604] 3. City College of San Francisco - Personal banking information and other information were stolen from tens of thousands of students, faculty, and administrators [9615]
Software Causes 1. Hackers gained unauthorized access to Zappos' internal network and systems through a server in Kentucky, leading to the theft of customer account information [9949, 9604, 9615]. 2. The cyberattack resulted in the exposure of sensitive customer data such as names, email addresses, addresses, phone numbers, and partial credit card numbers [9949, 9604, 9615]. 3. The incident involved a criminal cyberattack on Zappos' database of 24 million customers, potentially compromising personal information [9949, 9604, 9615]. 4. The hackers did not gain access to full credit card numbers or other payment data, as that database was not hacked [9604]. 5. Zappos took precautionary measures by resetting customer passwords and urging users to change their login credentials on other sites where they used the same password and username [9604, 9615].
Non-software Causes 1. The Zappos hack incident was caused by a cyberattack by hackers who gained unauthorized access to the company's internal network and systems through a server in Kentucky [9949, 9604, 9615]. 2. The cybercriminals responsible for the attack were able to access parts of Zappos' internal network and systems, leading to the exposure of sensitive customer information [9949, 9604, 9615]. 3. The incident was a result of illegal and unauthorized access to customer account information, leading to the compromise of names, email addresses, addresses, phone numbers, and partial credit card numbers of 24 million customers [9949, 9604, 9615].
Impacts 1. Customer account information of as many as 24 million customers was stolen, including email addresses, billing and shipping addresses, phone numbers, and the last four digits of credit cards [9949, 9604, 9615]. 2. Customers were urged to change their login credentials on other sites where they used the same password and username [9604]. 3. Zappos reset its customers' passwords as a precautionary measure, even though the actual passwords were encoded and not accessed by the hackers [9604]. 4. The incident affected the reputation, brand, and trust that Zappos had built with its customers over 12 years [9949, 9604, 9615]. 5. The security breach might lead to potential risks for users who reuse passwords across multiple sites [9949]. 6. The incident could potentially lead to escalating attacks as hackers could access private emails, bank accounts, and corporate accounts using the stolen information [9615].
Preventions 1. Implementing stronger network security measures such as regular security audits, intrusion detection systems, and firewalls could have prevented the cyberattack on Zappos' network [9949, 9604, 9615]. 2. Utilizing multi-factor authentication for user logins could have added an extra layer of security to prevent unauthorized access to customer account information [9949, 9604, 9615]. 3. Encrypting sensitive customer data, including email addresses, billing and shipping addresses, and phone numbers, could have made it more difficult for hackers to access and misuse the information even if they gained unauthorized access to the network [9949, 9604, 9615]. 4. Educating customers on the importance of using unique passwords for different online accounts to prevent password reuse attacks could have reduced the impact of the security breach [9949, 9604, 9615].
Fixes 1. Implementing stronger cybersecurity measures to prevent unauthorized access to internal networks and systems, such as enhancing network security protocols and regularly updating security software [9949, 9604, 9615]. 2. Encouraging users to use unique passwords for each online account and enabling multi-factor authentication to enhance account security [9949, 9604, 9615]. 3. Conducting regular security audits and assessments to identify vulnerabilities and address them promptly to prevent future cyberattacks [9949, 9604, 9615]. 4. Enhancing employee training on cybersecurity best practices to prevent social engineering attacks and improve overall security awareness within the organization [9949, 9604, 9615]. 5. Establishing a robust incident response plan to quickly detect, contain, and mitigate the impact of any future security breaches or cyberattacks [9949, 9604, 9615].
References 1. Zappos CEO Tony Hsieh - provided information about the cyberattack and the compromised customer information [9949, 9604, 9615]. 2. Security experts - highlighted the risks associated with password reuse and the importance of changing passwords [9949]. 3. Zappos company blog - posted a statement regarding the cyberattack and the steps taken by the company [9949]. 4. Zappos website - created a special page for users to change their passwords [9949]. 5. CNNMoney - reported on the details of the cyberattack and the actions taken by Zappos [9604]. 6. Zappos customers - affected by the cyberattack and urged to change their passwords [9604]. 7. Data Clone Labs - Ira Victor, a computer forensics and information analyst, provided insights into the potential risks and fallout of the cyberattack [9615]. 8. San Francisco Chronicle - reported on other security breaches and incidents related to cyberattacks [9615]. 9. City College of San Francisco - mentioned in relation to a separate security breach incident [9615]. 10. Sony and RSA SecureID - referenced as examples of previous significant security breaches [9615].

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident having happened again at one_organization: - Zappos, the online shoe retailer, experienced a cyberattack where hackers gained access to customer account information, affecting around 24 million customers [9949, 9604, 9615]. - The incident involved unauthorized access to the internal network and systems through a server in Kentucky, leading to the exposure of customer data such as names, email addresses, addresses, phone numbers, and partial credit card numbers [9949, 9604, 9615]. - Zappos reset customer passwords as a precautionary measure and urged customers to change their login credentials on other sites where they used the same password and username [9604]. - The company stressed that credit card information was not stolen in the breach, and it took steps to enhance security measures and cooperate with law enforcement for an investigation [9949, 9604, 9615]. - The incident highlighted the risks associated with password reuse across multiple online platforms and the potential consequences of such cyberattacks on customer trust and brand reputation [9949, 9604, 9615]. (b) The software failure incident having happened again at multiple_organization: - The articles do not provide specific information about similar incidents happening at other organizations or with their products and services.
Phase (Design/Operation) design, operation (a) The software failure incident at Zappos was primarily due to a design-related issue. The hackers gained access to the network and systems through one of the company's servers in Kentucky, indicating a vulnerability introduced during system development or updates [9949, 9604, 9615]. (b) Additionally, the incident could also be attributed to an operation-related factor, as customers were urged to change their login credentials on other sites where they used the same password and username, highlighting the impact of user operation or misuse on the security breach [9604].
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident at Zappos was due to contributing factors that originated from within the system. The hackers gained access to parts of Zappos' internal network and systems through one of their servers in Kentucky, leading to the compromise of customer account information [9949, 9604, 9615]. (b) outside_system: The software failure incident at Zappos was also influenced by contributing factors that originated from outside the system. The cyberattack was carried out by criminals external to the company who gained unauthorized access to Zappos' network and systems [9949, 9604, 9615].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident at Zappos was primarily due to non-human actions, specifically a cyberattack by hackers who gained unauthorized access to the company's network and systems through a server in Kentucky. This resulted in the exposure of sensitive customer information such as names, email addresses, addresses, phone numbers, and partial credit card numbers [9949, 9604, 9615]. (b) However, human actions were also involved in the response to the incident. Zappos took proactive steps by resetting customers' passwords and urging them to change their login credentials on other sites where they used the same password and username. Additionally, the company created a special page on its website to facilitate password changes for users, demonstrating a human response to mitigate the impact of the cyberattack [9949, 9604].
Dimension (Hardware/Software) hardware, software (a) The software failure incident occurring due to hardware: - The software failure incident at Zappos was due to hackers gaining access to the company's network through one of its servers in Kentucky, indicating a hardware-related vulnerability [9949, 9604, 9615]. (b) The software failure incident occurring due to software: - The software failure incident at Zappos was primarily due to unauthorized access to customer account information, indicating a software-related security breach [9949, 9604, 9615].
Objective (Malicious/Non-malicious) malicious (a) The software failure incident at Zappos was malicious, as it was a result of a cyberattack by hackers who gained unauthorized access to the company's network and systems with the intent to steal customer account information [9949, 9604, 9615]. The hackers compromised sensitive customer data such as names, email addresses, addresses, phone numbers, and partial credit card numbers from as many as 24 million customers. The incident was described as a cyberattack by criminals who exploited a vulnerability in one of Zappos' servers in Kentucky. The CEO of Zappos, Tony Hsieh, mentioned that the company was cooperating with law enforcement for an exhaustive investigation into the breach.
Intent (Poor/Accidental Decisions) unknown (a) poor_decisions: The software failure incident at Zappos was not primarily due to poor decisions but rather a cyberattack by hackers who gained unauthorized access to the company's network and systems [9949, 9604, 9615]. (b) accidental_decisions: The incident was not caused by accidental decisions but rather by a deliberate cyberattack on Zappos' network, resulting in the exposure of customer account information [9949, 9604, 9615].
Capability (Incompetence/Accidental) accidental (a) The software failure incident related to development incompetence is not explicitly mentioned in the provided articles. Therefore, it is unknown. (b) The software failure incident related to accidental factors is evident in the articles. The incident at Zappos, where hackers gained unauthorized access to customer account information, including names, email addresses, addresses, phone numbers, and partial credit card numbers, was accidental in nature. The breach occurred due to a criminal gaining access to parts of Zappos' internal network and systems through a server in Kentucky [9949, 9604, 9615].
Duration permanent (a) The software failure incident in the Zappos hack can be considered permanent as it resulted in unauthorized access to customer account information, including names, email addresses, addresses, phone numbers, and partial credit card numbers of 24 million customers [9949, 9604, 9615]. The breach was a result of a cyberattack by hackers who gained access to parts of Zappos' internal network and systems through a server in Kentucky. The incident led to the exposure of sensitive customer data, prompting the company to reset passwords and advise customers to change their login credentials on other sites where they used the same password and username. The breach had a lasting impact on customer trust and the company's reputation, indicating a permanent software failure incident.
Behaviour crash, omission, other (a) crash: - The software failure incident at Zappos resulted in a crash as hackers gained access to parts of the internal network and systems through a server in Kentucky, leading to the loss of customer account information [9949]. - The incident caused the company to reset passwords for existing customers to prevent abuse of the stolen data, indicating a system crash in terms of losing control over user account information [9949]. - The system crash was severe enough to prompt Zappos to create a special page for users to change their passwords, highlighting the impact of the incident on the system's stability [9949]. (b) omission: - The software failure incident involved an omission as hackers accessed customer account information, leading to the exposure of names, email addresses, addresses, phone numbers, and partial credit card numbers of 24 million customers [9604]. - Zappos reset its customers' passwords and urged them to change login credentials on other sites where they used the same password and username, indicating an omission in the system's ability to protect user data [9604]. - The incident involved an omission in the system's security measures, as Zappos had to take additional precautions like resetting passwords to mitigate the impact of the unauthorized access [9604]. (c) timing: - The software failure incident did not involve a timing issue as the system did not perform its intended functions too late or too early based on the information provided in the articles. (d) value: - The software failure incident did not involve a value issue as the system did not perform its intended functions incorrectly based on the information provided in the articles. (e) byzantine: - The software failure incident did not exhibit a byzantine behavior as the system did not show inconsistent responses or interactions based on the information provided in the articles. (f) other: - The software failure incident could be categorized under the "other" behavior as it involved a security breach where hackers gained unauthorized access to sensitive customer information, leading to a compromise of user data [9615]. - The incident resulted in the exposure of personal information like names, email addresses, and other details, indicating a breach in the system's security defenses [9615]. - Zappos had to cooperate with law enforcement for an exhaustive investigation, suggesting a significant impact on the system's security and integrity [9949].

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 at Zappos resulted in hackers gaining unauthorized access to the company's network, leading to the theft of customer account information from as many as 24 million customers. The stolen information included email addresses, billing and shipping addresses, phone numbers, and the last four digits of credit cards. While credit card information was not stolen, the breach compromised sensitive personal data of customers, potentially putting them at risk of identity theft and financial harm [9949, 9604, 9615].
Domain sales, finance, other (a) The failed system was related to the sales industry, specifically online retail. Zappos, the online shoe retailer, experienced a cyberattack where hackers accessed its network and stole customer account information, affecting as many as 24 million customers. The incident involved the compromise of personal information such as email addresses, billing and shipping addresses, phone numbers, and partial credit card numbers [9949, 9604, 9615]. (h) The incident also has implications for the finance industry as customers' financial information could potentially be at risk due to the exposure of personal data in the cyberattack on Zappos. While credit card information was not stolen, the breach included the last four digits of credit cards, which could be used to identify customers [9949, 9604, 9615]. (m) The failed system could also be categorized under the "other" industry as it pertains to online security and cybersecurity. The incident highlights the ongoing challenges and risks associated with maintaining the security of online platforms and protecting customer data from cyberattacks [9949, 9604, 9615].

Sources

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