Incident: Yahoo Data Breach: Massive Hacks Compromise Billions of Accounts

Published Date: 2016-09-22

Postmortem Analysis
Timeline 1. The software failure incident happened in 2013 and 2014 [58040, 63843].
System 1. Yahoo's network security system [47939, 47958, 63843] 2. Yahoo's user account security measures [47939, 58040, 63843]
Responsible Organization 1. State-sponsored hacking group [47939, 47958] 2. Russian hackers possibly linked to the Russian government [63843]
Impacted Organization 1. Yahoo [47939, 58040, 63843] 2. Verizon Communications [47939, 63843]
Software Causes 1. The software cause of the failure incident was a hack where hackers stole the personal data associated with at least 500 million Yahoo accounts in late 2014 [Article 47958]. 2. Another software cause was a different attack in 2013 that compromised more than 1 billion Yahoo accounts, involving sensitive user information such as names, telephone numbers, dates of birth, encrypted passwords, and unencrypted security questions [Article 58040]. 3. The failure incident also involved a previously disclosed attack in 2014 that affected 500 million Yahoo accounts, where digital thieves made off with names, birth dates, phone numbers, and passwords of users that were encrypted with security that was easy to crack [Article 63843].
Non-software Causes 1. Lack of timely detection and response to the breaches, allowing hackers to access user data over an extended period [47939, 58040, 63843]. 2. Inadequate security measures and protocols in place to protect user information, such as encryption of passwords and security questions [47939, 58040, 63843]. 3. Failure to conduct thorough security testing and due diligence during the acquisition process by Verizon before finalizing the deal with Yahoo [47939]. 4. Insufficient communication and transparency with users and the public regarding the extent and impact of the breaches [47939, 58040, 63843]. 5. Alleged involvement of state-sponsored hacking groups, indicating potential geopolitical implications and threats to national security [47939, 63843].
Impacts 1. Personal information of at least 500 million Yahoo users was stolen in 2014, including names, email addresses, telephone numbers, birth dates, encrypted passwords, and security questions, leading to a breach of privacy and potential identity theft [47939, 47958]. 2. The breach had far-reaching implications for users who had built their digital identities around Yahoo services, requiring them to change passwords not only on Yahoo but also on other online accounts to prevent further security risks [47939]. 3. The breach impacted the acquisition of Yahoo by Verizon, potentially affecting the sale price and raising concerns about the due diligence process regarding cybersecurity measures [47939]. 4. The disclosure of the breaches led to financial liabilities for Verizon, with potential shareholder lawsuits and increased risks of email fraud and account takeovers for affected users [63843]. 5. The stolen data was used for espionage purposes, with cybercriminals paying significant amounts for access to the stolen Yahoo database, highlighting the value of personal information in the underground web [63843]. 6. The breaches were linked to state-sponsored actors, with the 2013 breach believed to be connected to Russian hackers possibly linked to the Russian government, leading to concerns about national security implications [63843].
Preventions 1. Implementing robust cybersecurity measures such as regular security testing and audits to detect vulnerabilities and breaches early on [47939, 47958]. 2. Encrypting sensitive user information with strong encryption methods to prevent easy access to passwords and personal data [47958]. 3. Promptly responding to security incidents and breaches to contain the damage and prevent further unauthorized access [47939, 63843]. 4. Implementing best practices and security technologies such as encryption of communications and HTTPS for web properties to enhance overall security posture [47958]. 5. Avoiding delays in implementing necessary security measures and protocols to protect user data and prevent unauthorized access [47958].
Fixes 1. Implementing robust cybersecurity measures to prevent future hacks and breaches, such as encryption of sensitive data, regular security testing, and monitoring for suspicious activity [47939, 58040, 47958, 63843]. 2. Conducting thorough due diligence, including security checks, before acquiring or merging with another company to ensure the security of user data [47939, 58040, 47958, 63843]. 3. Enhancing password security practices, including encouraging users to change passwords regularly, avoid using the same passwords across multiple accounts, and enabling two-factor authentication [47939, 58040, 47958, 63843]. 4. Implementing a federal breach notification standard to ensure timely disclosure of data breaches to affected users and authorities [47939, 58040, 47958, 63843]. 5. Increasing awareness and vigilance among users regarding online security, including being cautious of suspicious emails, links, and attachments [47939, 58040, 47958, 63843].
References 1. Tech news site Recode [47939] 2. Yahoo statement [47939] 3. Verizon spokesman [47939] 4. Senator Mark R. Warner [47939] 5. Corey Williams from Centrify [47958] 6. US Senator Mark Warner [47958] 7. Security researcher Kurt Baumgartner from Kaspersky Lab [47958] 8. Verizon Communications [63843] 9. Chandra B. McMahon, Verizon’s chief information security officer [63843] 10. InfoArmor, an Arizona cybersecurity company [63843] 11. Frances Zelazny, the vice president of marketing at BioCatch [63843] 12. Department of Justice officials [63843]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident having happened again at one_organization: - Yahoo experienced multiple security breaches over the years, with the disclosure of a 2013 attack affecting more than 1 billion accounts [Article 58040]. - Verizon Communications, which acquired Yahoo, revealed that a previously disclosed attack in 2013 affected all three billion of Yahoo’s user accounts [Article 63843]. (b) The software failure incident having happened again at multiple_organization: - The articles do not mention similar incidents happening at other organizations.
Phase (Design/Operation) design (a) The software failure incident occurring due to the development phases: - The Yahoo hack incidents in 2013 and 2014 were a result of failures in the design and development phases of the system. These breaches
Boundary (Internal/External) within_system, outside_system (a) within_system: The software failure incident related to the Yahoo data breaches can be attributed to factors originating from within the system. The breaches involved hackers gaining unauthorized access to Yahoo's network and stealing sensitive user information, including names, email addresses, passwords, security questions, and more [47939, 58040, 47958, 63843]. These breaches were a result of vulnerabilities within Yahoo's systems that allowed the hackers to infiltrate and extract massive amounts of user data. Additionally, the delayed detection of the breaches further emphasizes internal weaknesses in Yahoo's security measures. (b) outside_system: The software failure incident can also be linked to factors originating from outside the system. For example, the breaches were carried out by hackers believed to be state-sponsored actors, indicating external threats targeting Yahoo's systems [47939, 47958, 63843]. The involvement of external entities in orchestrating the breaches highlights the challenges posed by sophisticated cyber threats that can breach system defenses from the outside.
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident occurring due to non-human actions: - The software failure incidents reported in the articles were primarily due to non-human actions, specifically hacking incidents carried out by cybercriminals. These hackers, believed to be state-sponsored actors, infiltrated Yahoo's systems and stole sensitive user information, including names, email addresses, passwords, and security questions [47939, 47958]. - The breaches were significant, with millions of user accounts compromised in multiple attacks over the years, leading to data breaches on a massive scale [47939, 58040, 63843]. - The stolen data was then sold on the dark web, indicating malicious intent and potential financial gains for the hackers [63843]. (b) The software failure incident occurring due to human actions: - Human actions also played a role in the software failure incidents, particularly in terms of Yahoo's response and handling of the breaches. There were criticisms of Yahoo's slow response to the attacks and its failure to implement best security practices promptly [47958]. - Additionally, there were concerns raised about the delayed disclosure of the breaches to the public, with Senator Mark Warner highlighting the importance of timely breach notifications to consumers [47958]. - The articles also mentioned the impact of these breaches on the sale of Yahoo to Verizon, indicating how human decisions and actions can influence the consequences of software failures [47939, 63843].
Dimension (Hardware/Software) software (a) The articles do not provide information about the software failure incident occurring due to hardware-related factors. (b) The software failure incidents reported in the articles are primarily due to contributing factors that originate in software. The incidents involve hackers gaining unauthorized access to Yahoo's systems and stealing sensitive user information, including names, email addresses, passwords, security questions, and other personal data [47939, 58040, 47958, 63843]. These breaches were a result of vulnerabilities in Yahoo's software systems that allowed hackers to exploit weaknesses and compromise user accounts.
Objective (Malicious/Non-malicious) malicious (a) The software failure incident related to the Yahoo data breaches can be categorized as malicious. The breaches involved hackers stealing sensitive user information, including names, email addresses, telephone numbers, birth dates, encrypted passwords, and security questions, with the intent to compromise user accounts and potentially engage in espionage activities [47939, 58040, 63843]. The breaches were attributed to state-sponsored actors and Russian hackers, indicating a deliberate and targeted attack on Yahoo's systems to gain unauthorized access to user data [47939, 63843]. Additionally, the stolen data was used for espionage purposes, including spying on government officials and executives [63843]. (b) The software failure incident cannot be categorized as non-malicious as the breaches were a result of deliberate hacking activities aimed at compromising user data and exploiting vulnerabilities in Yahoo's systems [47939, 58040, 63843].
Intent (Poor/Accidental Decisions) poor_decisions (a) poor_decisions: - The software failure incident involving Yahoo's data breaches in 2013 and 2014 can be attributed to poor decisions made by the company. Despite being aware of the 2013 breach affecting one billion accounts, Yahoo did not take appropriate steps to consider that all user accounts might have been compromised, leading to a significant oversight [63843]. - Verizon, which acquired Yahoo, expressed surprise that the full extent of the 2013 incident was not discovered before the acquisition deal closed, indicating a lack of thorough investigation and oversight by Yahoo [63843]. (b) accidental_decisions: - The articles do not provide specific information indicating that the software failure incident was due to accidental decisions or unintended mistakes.
Capability (Incompetence/Accidental) development_incompetence (a) The software failure incident occurring due to development_incompetence: - The Yahoo data breaches in 2013 and 2014, affecting billions of user accounts, were attributed to development incompetence as Yahoo failed to implement best practices and available security technologies, such as encryption and HTTPS, in a timely manner [Article 63843]. - The slow response by Yahoo to the attacks and the delayed implementation of security measures were highlighted as signs of development incompetence by security researchers [Article 47958]. (b) The software failure incident occurring accidentally: - The breaches at Yahoo were not accidental but were deliberate attacks by hackers, including state-sponsored actors, who exploited vulnerabilities in Yahoo's systems to steal user data [Article 47939, Article 58040]. - The breaches were not accidental but were part of a targeted effort by hackers to compromise Yahoo's network and extract sensitive user information [Article 63843].
Duration permanent, temporary (a) The software failure incident in the articles can be considered permanent as it involved multiple breaches over the years affecting a significant number of user accounts. The breaches were not isolated incidents but rather a series of attacks that compromised user data on a large scale. The breaches occurred in 2013, 2014, and possibly earlier, indicating a persistent vulnerability in Yahoo's systems [Article 47939], [Article 58040], [Article 63843]. (b) The software failure incident can also be seen as temporary in the sense that the breaches themselves were discrete events that occurred at specific points in time (2013 and 2014). While the impact of these breaches was significant and long-lasting, the actual incidents of unauthorized access and data theft were temporary events that took place within a certain timeframe [Article 47939], [Article 58040], [Article 63843].
Behaviour crash, omission, value, other (a) crash: The software failure incident related to the Yahoo hack can be categorized as a crash. The incident involved a breach of Yahoo's systems by hackers, resulting in the loss of sensitive user information such as names, passwords, email addresses, phone numbers, and security questions [47939, 47958, 58040]. (b) omission: The software failure incident can also be categorized as an omission. Yahoo failed to detect the full extent of the 2013 attack on its network before Verizon closed the deal to acquire Yahoo in June [63843]. (c) timing: The timing of the software failure incident can be considered in terms of being too late in detection. Yahoo took an unusually long time to identify the hacking incident, as it dated back to 2014, and the breach was only discovered in 2016 [47939]. (d) value: The software failure incident can be categorized as a failure due to the system performing its intended functions incorrectly. The breach resulted in the theft of valuable user information, compromising the security and privacy of millions of users [47939, 58040, 63843]. (e) byzantine: The software failure incident does not align with the byzantine behavior as described in the options. (f) other: The software failure incident can also be categorized as a failure due to the system behaving in a way not described in the options. This includes the delayed response in identifying the breach, the impact on the sale of Yahoo to Verizon, and the potential implications for users and the company [47939, 58040, 63843].

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 Yahoo resulted in the theft of sensitive user information, including names, email addresses, telephone numbers, birth dates, encrypted passwords, and security questions [47939]. - The stolen data included information that could lead to users' connections to their banks, social media profiles, financial services, friends, and family, making it one of the biggest breaches of people's privacy [47939]. - The breach had implications for consumers who had built their digital identities around Yahoo services, potentially affecting their bank accounts, photo albums, and medical information [47939]. - The stolen Yahoo credentials were being traded on the underground web, indicating a significant impact on users' data security and privacy [47939]. - The breaches at Yahoo led to financial liabilities for Verizon, the company acquiring Yahoo, and resulted in a reduction of $350 million from Verizon's original offer [63843]. - The stolen Yahoo data was sold to various entities, including spammers and potentially those interested in espionage, highlighting the financial value of the compromised information [63843]. - Cybersecurity professionals warned of an escalation in email fraud and account takeovers due to the stolen data, potentially impacting individuals who reuse passwords across different sites and services [63843].
Domain information, finance (a) The failed system was related to the information industry, specifically affecting Yahoo's email service and user accounts. The breach compromised user information such as names, email addresses, phone numbers, birth dates, encrypted passwords, and security questions [47939, 47958]. (h) The incident also impacted the finance industry indirectly as users' connections to their banks and financial services could be compromised due to the stolen Yahoo data. This breach could lead to financial risks for users and potential class-action lawsuits, highlighting the intersection of the information and finance industries [47939]. (m) The software failure incident was not directly related to any other industry beyond information and finance as detailed in the articles.

Sources

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