[HN Gopher] Checkout.com hacked, refuses ransom payment, donates...
       ___________________________________________________________________
        
       Checkout.com hacked, refuses ransom payment, donates to security
       labs
        
       Author : StrangeSound
       Score  : 503 points
       Date   : 2025-11-13 09:23 UTC (13 hours ago)
        
 (HTM) web link (www.checkout.com)
 (TXT) w3m dump (www.checkout.com)
        
       | throwaway2037 wrote:
       | I love this part (no trolling from me):                   > We
       | are sorry. We regret that this incident has caused worry for our
       | partners and people. We have begun the process to identify and
       | contact those impacted and are working closely with law
       | enforcement and the relevant regulators. We are fully committed
       | to maintaining your trust.
       | 
       | I know there will by a bunch of cynics who say that an LLM or a
       | PR crisis team wrote this post... but if they did, hats off. It
       | is powerful and moving. This guys really falls on his sword /
       | takes it on the chin.
        
         | M4v3R wrote:
         | Words are cheap, but "We are sorry." is a surprisingly rare
         | thing for a company to say (they will usually sugarcoat it,
         | shift blame, add qualifiers, use weasel words, etc.), so it's
         | refreshing to hear that.
        
           | sunaookami wrote:
           | This is a classic example of a fake apology: "We regret that
           | this incident has caused worry for our partners and people"
           | they are not really "sorry" that data was stolen but only
           | "regret" that their partners are worried. No word on how they
           | will prevent this in the future and how it even happened.
           | Instead it gets downplayed ("legacy third-party","less than
           | 25% were affected" (which is a huge number), no word on what
           | data exactly).
        
             | koliber wrote:
             | How would the apology need to be worded so that it does not
             | get interpreted as a fake apology?
             | 
             | In terms of "downplaying" it seems like they are pretty
             | concrete in sharing the blast radius. If less than 25% of
             | users were affected, how else should they phrase this? They
             | do say that this was data used for onboarding merchants
             | that was on a system that was used in the past and is no
             | longer used.
             | 
             | I am as annoyed by companies sugar coating responses, but
             | here the response sounds refreshingly concrete and more
             | genuine than most.
        
               | actionfromafar wrote:
               | "Up to 25% of users were affected." "As many as 25% of
               | users were affected."
               | 
               | "A quarter of user accounts were affected. We have
               | calculated that to be 7% of our customers."
        
               | throwaway290 wrote:
               | > How would the apology need to be worded so that it does
               | not get interpreted as a fake apology?
               | 
               | "We regret that we neglected our security to such degree
               | that it has caused this incident."
               | 
               | It's very simple. Don't be sorry I feel bad, be sorry you
               | did bad.
        
               | koliber wrote:
               | They stated clearly in the article:
               | 
               | > This was our mistake, and we take full responsibility.
               | 
               | I wonder how much of the negative sentiment about this is
               | from a knee jerk reaction and careless reading vs.
               | thoughtful commentary.
        
               | esskay wrote:
               | IMO something like:
               | 
               | We are truly sorry for the impact this has no doubt
               | caused on our customers and partners businesses. This
               | clearly should never have happened, and we take full
               | responsibility.
               | 
               | Whilst we can never put into words how deeply sorry we
               | are, we will work tirelessly to make this right with each
               | and every one of you, starting with a full account of
               | what transpired, and the steps we are going to be taking
               | immediately to ensure nothing like this can ever happen
               | again.
               | 
               | We want to work directly with you to help minimise the
               | impact on you, and will be reaching out to every customer
               | directly to help understand their immediate needs. If
               | that means helping you migrate away to another platform,
               | then so be it - we will assist in any way we can. Trust
               | should be earn't, and we completely understand that in
               | this instance your trust in us has understandably been
               | shaken.
        
               | hitarpetar wrote:
               | an effective apology establishes accountability,
               | demonstrates reflection on what caused the problem, and
               | commits to concrete changes to prevent it from
               | reoccurring
        
             | dcminter wrote:
             | _This was our mistake, and we take full responsibility._
             | 
             | That preceding line makes it, to me, a real apology. They
             | admit fault.
        
             | contravariant wrote:
             | Seems a bit harsh to leave out the rest of the apology and
             | only focus on the part that is not much of an apology.
        
             | berkes wrote:
             | I always presume the "We are sorry" opens up to financial
             | compensation, whereas the "we regret that you are worried"
             | does not.
             | 
             | In my country, this debate is being held WRT the atrocities
             | my country committed in its (former) colonies, and towards
             | enslaved humans1. Our king and prime minister never truly
             | "apologized". Because, I kid you not, the government fears
             | that this opens up possibilities for financial reparation
             | or compensation and the government doesn't want to pay
             | this. They basically searched for the words that _sound_ as
             | close to apologies as possible, but aren 't words that
             | require one to act on the apologies.
             | 
             | 1 I'm talking about The Netherlands. Where such atrocities
             | were committed as close as one and a half generations ago
             | still (1949)
             | (https://www.maastrichtuniversity.nl/blog/2022/10/how-do-
             | dutc...) but mostly during what is still called "The Golden
             | Age".
        
               | mrguyorama wrote:
               | If you are unwilling to say "We are sorry" because "that
               | opens you up to lawsuits" then you are not sorry.
               | 
               | Letting business concerns trump human empathy is _exactly
               | the damn problem_ and exactly why these companies still
               | deserve immense ire no matter how they word their  "We
               | don't want to admit fault but we want you to think we
               | care" press release. This is also true of something like
               | the Dutch crown or the USA having tons of people being
               | extremely upset at the suggestion of teaching kids what
               | the US has actually done in it's history.
        
             | udev4096 wrote:
             | Agreed. It's just a classic way to manipulate the viewers.
             | They just wanted to sound edgy for not paying a ransom,
             | which is definitely a good thing. Never pay these crooks
             | but you left a legacy system online without any
             | protections? That's serious
        
             | darkwater wrote:
             | > No word on how they will prevent this in the future and
             | how it even happened.
             | 
             | Because these things take time, while you need to disclose
             | that something happened as fast as possible to your
             | customers (in the EU, you are mandated by the GDPR, for
             | instance).
        
         | sigmoid10 wrote:
         | I'll never not think of that South Park scene where they mocked
         | BP's "We're so sorry" statement whenever I see one of those. I
         | don't care if you're sorry or if you realize how much you
         | betrayed your customers. Tell me how you investigated the root
         | causes of the incident and how the results will prevent this
         | scenario from ever happening again. Like, how many other
         | deprecated third party systems were identified handling a
         | significant portion of your customer data after this hack? Who
         | declined to allocate the necessary budget to keep systems
         | updated? That's the only way I will even consider giving some
         | trust back. If you really want to apologise, start handing out
         | cash or whatever to the people you betrayed. But mere words
         | like these are absolutely meaningless in today's world. People
         | are right to dismiss them.
        
           | YetAnotherNick wrote:
           | Right. Transparency doesn't mean telling about the attack
           | that already happened. It means telling us about their issues
           | and ways this could happen again. And they didn't even
           | mention the investment amount for the security labs.
        
           | jacquesm wrote:
           | I wouldn't be so quick. _Everybody_ gets hacked, sooner or
           | later. Whether they 'll own up to it or not is what makes the
           | difference and I've seen far, far worse than this response by
           | Checkout.com, it seems to be one of the better responses to
           | such an event that I've seen to date.
           | 
           | > Like, how many other deprecated third party systems were
           | identified handling a significant portion of your customer
           | data after this hack?
           | 
           | The problem with that is that _you 'll never know_. Because
           | you'd have to audit each and every service provider and I
           | think only Ebay does that. And they're not exactly a paragon
           | of virtue either.
           | 
           | > Who declined to allocate the necessary budget to keep
           | systems updated?
           | 
           | See: prevention paradox. Until this sinks in it will happen
           | over and over again.
           | 
           | > But mere words like these are absolutely meaningless in
           | today's world. People are right to dismiss them.
           | 
           | Again, yes, but: they are at least attempting to use the
           | right words. Now they need to follow them up with the right
           | actions.
        
             | sharken wrote:
             | Well said, ideally action comes first and then these
             | actions can be communicated.
             | 
             | But in the real world, you have words ie. commitment before
             | actions and a conclusion.
             | 
             | Best of luck to them.
        
             | BoredPositron wrote:
             | There are millions of companies even century or decade old
             | ones without a hacking incident with data extraction. The
             | whole everyone gets hacked is copium for a lack of security
             | standards or here the lack of deprecation and having
             | unmantained systems online with legacy client data.
             | Announcing it proudly would be concerning if I had business
             | with them. It's not even a lack of competence... it's a
             | lack of hygiene.
        
               | bragr wrote:
               | >There are millions of companies even century or decade
               | old ones without a hacking incident with data extraction.
               | 
               | Name five.
        
               | Retric wrote:
               | The pedantic answer is to point to a bunch of shell
               | companies without any electronic presence. However in
               | terms of actual businesses there's decent odds the
               | closest dry cleaners, independent restaurant, car wash,
               | etc has not had its data extracted by a hacking incident.
               | 
               | Having a minimal attack surface and not being actively
               | targeted is a meaningful advantage here.
        
               | bragr wrote:
               | >there's decent odds the closest dry cleaners,
               | independent restaurant, car wash, etc has not had its
               | data extracted by a hacking incident.
               | 
               | And there's also a decent chance they have. Did we not
               | just have a years long spate of ransomware targeting
               | small businesses?
        
               | Retric wrote:
               | Most ransomeware isn't exfiltrating data. For small
               | business you can automate the 'pay to unencrypt your HDD'
               | model easy without care for what's on the disk.
        
               | udev4096 wrote:
               | There are definitely companies who have never been
               | breached and it's not that hard. Defense in depth is all
               | you need
        
               | RealityVoid wrote:
               | Isn't defense in depth's whole point that some of your
               | defenses will get breached?
        
               | BoredPositron wrote:
               | Take the OP. What defenses were breached? An old
               | abandoned system running unmantained in the background
               | with old user data still attached. There is no excuse.
        
             | benchly wrote:
             | > _Everybody_ gets hacked, sooner or later.
             | 
             | Right! But, wouldn't a more appropriate approach be to
             | mitigate the damage from being hacked as much as possible
             | in the first place? Perhaps this starts by simplifying
             | bloated systems, reducing data collection to data that
             | which is only absolutely legally necessary for KYC and
             | financial transactions in whatever respective country(ies)
             | the service operates in, hammer-testing databases for old
             | tricks that seem to have been forgotten about in a
             | landscape of hacks with ever-increasingly complexity, etc.
             | 
             | Maybe it's the dad in me, years of telling me son to not
             | apologize, but to avoid the behavior that causes the
             | problem in the first place. Bad things happen, and we all
             | screw up from time to time, that is a fact of life, but a
             | little forethought and consideration about the best or
             | safest way to do a thing is a great way to shrink the blast
             | area of any surprise bombs that go off.
        
               | ummonk wrote:
               | I don't see how any of what you're suggesting would have
               | prevented this hack though (which involved an old storage
               | account that hadn't been used since 2020 getting hacked).
        
               | benchly wrote:
               | You don't see how preventative maintenance such as
               | implementing a policy to remove old accounts after N days
               | could have prevented this? Preventative maintenance is
               | part of the forethought that should take place about the
               | best or safest way to do a thing. This is something that
               | could be easily learned by looking an problems others
               | have had in the past.
               | 
               | As a controls tech, I provide a lot of documentation and
               | teach to our customers about how to deploy, operate and
               | maintain a machine for best possible results with lowest
               | risk to production or human safety. Some clients follow
               | my instruction, some do not. Guess which ones end up
               | getting billed most for my time after they've implemented
               | a product we make.
               | 
               | Too often, we want to just do without thinking. This
               | often causes us to overlook critical points of failure.
        
               | ChrisMarshallNY wrote:
               | For the app I maintain, we have a policy of deleting
               | inactive accounts, after a year. We delete approved
               | signups that have not been "consummated," after thirty
               | days.
               | 
               | Even so, we still need to keep an eye out. A couple of
               | days ago, an old account (not quite a year), started
               | spewing connection requests to all the app users. It had
               | been a legit account, so I have to assume it was pwned.
               | We deleted it quickly.
               | 
               | A lot of our monitoring is done manually, and carefully.
               | We have extremely strict privacy rules, and that actually
               | makes security monitoring a bit more difficult.
        
               | jacquesm wrote:
               | These are excellent practices.
               | 
               | Such data is a liability, not an asset and if you dispose
               | of it as soon as you reasonably can that's good. If this
               | is a communications service consider saving a hash of the
               | ID and refusing new sign ups with that same ID because if
               | the data gets deleted then someone could re-sign up with
               | someone else's old account. But if you keep a copy of the
               | hash around you can check if an account has ever existed
               | and refuse registration if that's the case.
        
               | ChrisMarshallNY wrote:
               | It would violate our privacy policy.
               | 
               | It's important that "delete all my information" also
               | deletes _everything_ after the user logs in for the first
               | time.
               | 
               | Also, I'm not sure that Apple would allow it. They insist
               | that deletion remove all traces of the user. As far as I
               | know, there's no legal mandate to retain anything, and
               | the nature of our demographic, means that folks could be
               | hurt _badly_ by leaks.
               | 
               | So we retain as little information as possible -even if
               | that makes it more difficult for us to adminster, and
               | destroy everything, when we delete.
        
               | jacquesm wrote:
               | I think you misunderstood my comment and/or fail to
               | properly appreciate the subtle points of what I suggest
               | you keep.
               | 
               | The risk you have here is one of account re-use, and the
               | method I'm suggesting allows you to close that hole in
               | your armor which could in turn be used to impersonate
               | people whose accounts have been removed at their request.
               | This is comparable to not being able to re-use a phone
               | number once it is returned to the pool (and these are
               | usually re-allocated after a while because they are a
               | scarce resource, which ordinary user ids are not).
        
               | ChrisMarshallNY wrote:
               | _> I think you misunderstood my comment and /or fail to
               | properly appreciate the subtle points of what I suggest
               | you keep._
               | 
               | Nah, but I understand the error. Not a big deal.
               | 
               | We. Just. Plain. Don't. Keep. Any. Data. Not.
               | Immediately. Relevant. To. The. App.
               | 
               | Any bad actor can easily register a throwaway, and
               | there's no way to prevent that, without storing some
               | _seriously_ dangerous data, so we don 't even try.
               | 
               | It hasn't been an issue. The incident that I mentioned,
               | is the only one we've ever had, and I nuked it in five
               | minutes. Even if a baddie gets in, they won't be able to
               | do much, because we store so little data. This person
               | would have found all those connections to be next to
               | useless, even if I hadn't stopped them.
               | 
               | I'm a really cynical bastard, and I have spent my entire
               | adult life, rubbing elbows with some of the nastiest
               | folks on Earth. I have a fairly good handle on "thinking
               | like a baddie."
               | 
               | It's very important that people who may even be somewhat
               | inimical to our community, be allowed to register
               | accounts. It's a way of accessing extremely important
               | resources.
        
               | bix6 wrote:
               | > I provide a lot of documentation
               | 
               | > Some clients follow my instruction, some do not.
               | 
               | So you're telling me you design a non-foolproof system?!?
               | Why isn't it fully automated to prevent any potential
               | pitfalls?
        
               | markdown wrote:
               | > Maybe it's the dad in me, years of telling me son to
               | not apologize, but to avoid the behavior that causes the
               | problem in the first place.
               | 
               | What an odd thing to teach a child. If you've wronged
               | someone, avoiding the behavior in future is something
               | that'll help you, but does sweet fuck all for the person
               | you just wronged. They still deserve an apology.
        
               | james_marks wrote:
               | Not a weird thing to teach a child.
               | 
               | It's 5-why's style root cause analysis, which will build
               | a person that causes less harm to others.
               | 
               | I am willing to believe that the same parent also teaches
               | when and why it is sometimes right to apologize.
        
               | benchly wrote:
               | Thanks, this is where I was coming from. I suppose I
               | could have made that more clear in my original comment.
               | The idea behind my style of parenting is self-reflecting
               | and our ability to analyze the impact of our choices
               | before we make them.
               | 
               | But of course, apologizing when you have definitely
               | wronged a person is important, too. I didn't mean to come
               | off as teaching my kid to _never_ apologize, just think
               | before you act. But you get the idea.
        
               | ryandrake wrote:
               | Yea, plus, anyone with kids knows that a lot of them just
               | treat "sorry" as some sort of magic spell that you
               | casually invoke right after you mess up, and then
               | continue on with your ways. I teach my kid to both
               | apologize and then consider corrective action, too.
        
               | timcobb wrote:
               | I think people this approach is overcompensating for
               | over-apologizing (or, similarly, over thanking, both in
               | excess are off-putting). I have a child who just says
               | "sorry" and doesn't actually care about changing the
               | underlying behavior.
               | 
               | But yes, even if you try to make a healthy balance, there
               | are still plenty of times when an apology are appropriate
               | and will go a long way, for the giver and receiver, in my
               | opinion anyway.
        
               | benchly wrote:
               | Sorry, I should have worded that as "stop apologizing so
               | much, especially when you keep making the same
               | mistake/error/disruption/etc."
               | 
               | I did not mean to come off as teaching my kid to _never_
               | apologize.
        
               | skeeter2020 wrote:
               | "Sorry - this is my fault" is such an effective response,
               | if followed up with "how do we make this right?" or "stop
               | this from happening again?"
        
               | iwontberude wrote:
               | lmao you taught your son to not apologize and if he can
               | help it not do anything that gets him caught. maybe this
               | is how we get politicians that never admit they were
               | wrong and weasel out of everything
        
             | kbrkbr wrote:
             | I like your stance.
             | 
             | We also have to remember that we have collectively decided
             | to use Windows and AD, QA tested software etc (some
             | examples) over correct software, hardened by default
             | settings etc.
        
             | miohtama wrote:
             | Not everyone gets hacked. Companies not hacked include e.g.
             | 
             | - Google
             | 
             | - Amazon
             | 
             | - Meta
        
               | ceejayoz wrote:
               | Meta once misconfigured the web servers and exposed the
               | source. https://techcrunch.com/2007/08/11/facebook-
               | source-code-leake...
        
               | lr4444lr wrote:
               | ... that we know of. Perhaps some of those "outages" were
               | compromised systems.
        
               | red-iron-pine wrote:
               | "shit it's compromised. pull the plug ASAP"
        
               | sigmoid10 wrote:
               | The relevant difference here is that these companies have
               | actual security standards on the level that you would
               | only find in the FAA or similar organisations were lives
               | are in danger. For every incident in Google cloud for
               | example, they don't just apologise, but they state
               | exactly what happened and how they responded (down to the
               | minute) and you can read up exactly how they plan to
               | prevent this from happening again: https://status.cloud.g
               | oogle.com/incidents/ow5i3PPK96RduMcb1S...
               | 
               | This is what incident handling by a trustworthy provider
               | looks like.
        
               | dragoncrab wrote:
               | Google just got hacked in June:
               | 
               | https://cloud.google.com/blog/topics/threat-
               | intelligence/voi...
               | 
               | https://www.forbes.com/sites/daveywinder/2025/08/09/googl
               | e-c...
        
               | NBJack wrote:
               | That was a Salesforce instance with largely public data,
               | rather than something owned and operated by Google
               | itself. It's a bit like saying you stole from me, but
               | instead of my apartment you broke into my off-site
               | storage with Uhaul. Technically correct, but different
               | implications on the integrity of my apartment security.
        
               | scottbcovert wrote:
               | It was a social engineering attack that leveraged the
               | device OAuth flow, where the device gaining access to the
               | resource server (in this case the Salesforce API) is
               | separate from the device that grants the authorization.
               | 
               | The hackers called employees/contractors at Google (&
               | lots of other large companies) with user access to the
               | company's Salesforce instance and tricked them into
               | authorizing API access for the hackers' machine.
               | 
               | It's the same as loading Apple TV on your Roku despite
               | not having a subscription and then calling your neighbor
               | who does have an account and tricking them into entering
               | the 5 digit code at link.apple.com
               | 
               | Continuing with your analogy, they didn't _break_ into
               | the off-site storage unit so much as they tricked someone
               | into giving them a key.
               | 
               | There's no security vulnerability in Google/Salesforce or
               | your apartment/storage per se, but a lapse in security
               | training for employees/contractors can be the functional
               | equivalent to a zero-day vulnerability.
        
               | Thorrez wrote:
               | There's no vulnerability per se, but I think the
               | Salesforce UI is pretty confusing in this case. It looks
               | like a login page, but actually if you fill it in, you're
               | granting an attacker access.
               | 
               | Disclosure: I work at Google, but don't have much
               | knowledge about this case.
        
               | xvector wrote:
               | They also have plenty of domestic and foreign
               | intelligence agents literally working with sensitive
               | systems at the company.
        
               | ckozlowski wrote:
               | Amazonian here. My views are my own; I do not represent
               | my company/corporate.
               | 
               | That said...
               | 
               | We do our very best. But I don't know anyone here who
               | would say "it can never happen". Security is never an
               | absolute. The best processes and technology will lower
               | the likelihood and impact towards 0, but never _to_ 0.
               | Viewed from that angle, it 's not if Amazon will be
               | hacked, it's when and to what extent. It is my sincere
               | hope that if we have an incident, we rise up to the
               | moment with transparency and humility. I believe that's
               | what most of us are looking for during and after an
               | incident has occurred.
               | 
               | To our customers: Do your best, but have a plan for what
               | you're going to do when it happens. Incidents like this
               | one here from checkout.com can show examples of some
               | positive actions that can be taken.
        
               | jacquesm wrote:
               | > But I don't know anyone here who would say "it can
               | never happen". Security is never an absolute.
               | 
               | Exactly. I think it is great for people like you to
               | inject some more realistic expectations into discussions
               | like these.
               | 
               | An entity like Amazon is not - in the longer term - going
               | to escape fate, but they have more budget and (usually)
               | much better internal practices which rule out the kind of
               | thing that would bring down a lesser org. But in the end
               | it is all about the budget, as long as Amazon's budget is
               | significantly larger than the attackers they will
               | probably manage to stay ahead. But if they ever get
               | complacent or start economizing on security then the odds
               | change very rapidly. Your very realistic stance is one of
               | the reasons it hasn't happened yet, you are acutely aware
               | you are in spite of all of your efforts still at risk.
               | 
               | Blast radius reduction by removing data you no longer
               | need (and that includes the marketing department, who
               | more often than not are the real culprit) is a good first
               | step towards more realistic expectations for any org.
        
               | Aaronstotle wrote:
               | Google got hacked back in 2010, lookup Operation Aurora.
               | It wasn't a full own, but it shows that even the big guys
               | can get hacked.
        
               | skeeter2020 wrote:
               | fair or not, if their customers get hacked it's still on
               | them to mitigate and reduce the damage. Ex: cloud
               | providers that provide billing alerts but not hard cut-
               | offs are not doing a good job.
        
               | red-iron-pine wrote:
               | Nah.
               | 
               | The Chinese got into gmail (Google) essentially on a whim
               | to get David Petraeus' emails to his mistress. Ended his
               | career, basically.
               | 
               | I'd bet my hat that all 3 are definitely penetrated and
               | have been off and on for a while -- they just don't
               | disclose it.
               | 
               | source: in security at big orgs
        
               | Thorrez wrote:
               | Do you have a source that the Google hack was related to
               | David Petraeus? This page doesn't mention it[1]. Does the
               | timeline line up? Google was hacked in 2009[2]. The
               | Petraeus stuff seems to have happened later.
               | 
               | Disclosure: I work at Google but have no internal
               | knowledge about whether Petraeus was related to Operation
               | Aurora.
               | 
               | [1] https://en.wikipedia.org/wiki/Petraeus_scandal
               | 
               | [2] https://en.wikipedia.org/wiki/Operation_Aurora
        
               | thaumasiotes wrote:
               | > I'd bet my hat that all 3 are definitely penetrated and
               | have been off and on for a while -- they just don't
               | disclose it.
               | 
               | Considering the number of Chinese nationals who work for
               | them at various levels... _of course_ they 're all
               | penetrated. How could that possibly fail to be true?
        
               | alt227 wrote:
               | Didnt Edward Snowden release documents that the NSA had
               | fully compromised googles internal systems?
        
               | edm0nd wrote:
               | Yup. The NSA has every single major US tech company
               | tapped at their server level and are harvesting all their
               | data. Issues them NSLs and there is zero way these
               | companies can refuse the taps.
        
               | jacquesm wrote:
               | Everybody includes Google, Amazon and Meta.
               | 
               | They too will get hacked, if it hasn't happened already.
        
               | Thorrez wrote:
               | Facebook was hacked in 2013. Attacker used a Java browser
               | exploit to take over employees' computers:
               | 
               | https://www.reuters.com/article/technology/exclusive-
               | apple-m...
               | 
               | Facebook was also hacked in 2018. A vulnerability in the
               | website allowed attackers to steal the API keys for 50
               | million accounts:
               | 
               | https://news.ycombinator.com/item?id=18094823
        
               | edm0nd wrote:
               | You are joking right?
               | 
               | All of these companies have been hacked by nation states
               | like Russia and China.
        
             | adrianN wrote:
             | The prevention paradox only really applies when the bad
             | event has significant costs. It seems to me that getting
             | hacked has at worst mild consequences. Cisco for example is
             | still doing well despite numerous embarrassing backdoors.
        
           | pembrook wrote:
           | In attacks on software systems specifically though, I always
           | find this aggressive stance toward the victimized business
           | odd, especially when otherwise reasonable security standards
           | have been met. You simply cannot plug all holes.
           | 
           | As AI tools accelerate hacking capabilities, at what point do
           | we seriously start going after the attackers across borders
           | and stop blaming the victimized businesses?
           | 
           | We solved this in the past. Let's say you ran a brick-and-
           | mortar business, and even though you secured your sensitive
           | customer paperwork in a locked safe (which most probably
           | didn't), someone broke into the building and cracked the safe
           | with industrial-grade drilling equipment.
           | 
           | You would rightly focus your ire and efforts on the
           | perpetrators, and not say _"gahhh what an evil dumb business,
           | you didn't think to install a safe of at least 1 meter thick
           | titanium to protect against industrial grade drilling!????"_
           | 
           | If we want to have nice things going forward, the solution is
           | going to have to involve much more aggressive cybercrime
           | enforcement globally. If 100,000 North Koreans landed on the
           | shores of Los Angeles and began looting en masse, the
           | solution would not be to have everybody build medieval stone
           | fortresses around their homes.
        
           | josfredo wrote:
           | No trolling on my side, I think having people who think just
           | like you is a triumph for humanity. As we approach times far
           | darker and manipulation takes smarter shapes, a cynical mind
           | is worth many trophies.
        
           | ema wrote:
           | > prevent this scenario from ever happening again.
           | 
           | Every additional nine of not getting hacked takes effort.
           | Getting to 100% takes infinite effort i.e. is impossible.
           | Trying to achieve the impossible will make you spin on the
           | spot chasing ever more obscure solutions.
           | 
           | As soon as you understand a potential solution enough to
           | implement it you also understand that it cannot achieve the
           | impossible. If you keep insisting on achieving the impossible
           | you have to abandon this potential solution and pin your hope
           | on something you don't understand yet. And so the cycle
           | repeats.
           | 
           | It is good to hold people accountable but only demand the
           | impossible from those you want to go crazy.
        
           | bargainbin wrote:
           | The intent of the South Park sketch was to lampoon that BP
           | were (/are) willingly doing awful things and then give corpo
           | apology statements when caught.
           | 
           | Here, Checkout has been the victim of a crime, just as much
           | as their impacted customers. It's a loss for everyone
           | involved except the perpetrators. Using words like "betrayed"
           | as if Checkout wilfully mislead its customers, is a heavy
           | accusation to level.
           | 
           | At a point, all you can do is apologise, offer compensation
           | if possible, and plot out how you're going to prevent it
           | going forward.
        
             | ImPostingOnHN wrote:
             | _> At a point, all you can do is apologise, offer
             | compensation if possible, and plot out how you're going to
             | prevent it going forward._
             | 
             | I totally agree - You've covered the 3 most important
             | things to do here: Apologize; make it right; sufficiently
             | explain in detail to customers how you'll prevent
             | recurrences.
             | 
             | After reading the post, I see the 1st of 3. To their
             | credit, most companies don't get that far, so thanks,
             | Checkout.com. Now keep going, 2 tasks left to do and be
             | totally transparent about.
        
           | gosub100 wrote:
           | What you request is for them to divulge internal details of
           | their architecture that could lead to additional compromise
           | as well as admission of fault that could make it easier for
           | them to be sued. All for some intangible moral notion. No
           | business leader would ever do those things.
        
           | saulpw wrote:
           | They are donating the entire ransom amount to two
           | universities for security research. I don't care about the
           | words themselves, but assuming they're not outright lying
           | about this, that meant a lot to me. They are putting their
           | (corporate!) money where their mouth is.
        
           | renewiltord wrote:
           | Haha, yes, this is entirely what I expected. I was actually
           | pleasantly surprised by the GP because internet commentators
           | always find a reason that some statement is imperfect.
           | 
           | Indeed, an apology is bad and no apology is also bad. In
           | fact, all things are bad. Haha! Absolutely prime.
        
         | blitzar wrote:
         | > We are fully committed to maintaining your trust.
         | 
         | We are fully committed to _rebuilding_ your trust.
        
         | mannanj wrote:
         | I like you like this. For me it's close but fails in the word
         | selection in the last sentence: "maintaining" trust is not what
         | I would say their job is at this point, it's "restoring" it.
         | 
         | One places the company at the center as the important point of
         | reference, avoiding some responsibility. The other places the
         | customer at the center, taking responsibility.
        
         | udev4096 wrote:
         | Since when did owning up to a data breach become such a
         | noteworthy event? Less than 25% sounds more like exactly 25% of
         | impacted customers
        
         | tippa123 wrote:
         | Refreshing to not see "due to an abundance of caution". Kudos
         | to the response in general, they pretty much ticked all boxes.
        
         | Animats wrote:
         | The hard line:
         | 
         | "We will pay $500,000 to anyone who can provide information
         | leading to the arrest and conviction of the perpetrators. If
         | the perpetrators can be clearly identified but are not in a
         | country which extradites to or from the United States, we will
         | pay $500,000 for their heads."
        
       | lexlambda wrote:
       | The donation is more or less virtue signaling rather than actual
       | insight.
       | 
       | The problem can not be helped by research research against
       | cybercrime. Proper practices for protections are well established
       | and known, they just need to be implemented.
       | 
       | The amount donated should've rather be invested into better
       | protections / hiring a person responsible in the company.
       | 
       | (Context: The hack happened on a not properly decomissioned
       | legacy system.)
        
         | varispeed wrote:
         | There is not much to research. If companies want security, they
         | should pay for security.
        
           | dspillett wrote:
           | _> If companies want security, they should pay for security._
           | 
           | Or just properly follow best-practise, and their own
           | procedures, internally.0
           | 
           | That was the failing here, which in an unusual act of honesty
           | they are taking responsibility for in this matter.
           | 
           | --------
           | 
           | [0] That might be considered paying for security, indirectly,
           | as it means having the resources available to make sure these
           | things are done, and tracked so it can be proven they are
           | done making slips difficult to happen and easy to track &
           | hopefully rectify when they inevitably still do.
        
           | rollcat wrote:
           | Security is an arms race. Don't expect a leap; do your part
           | to stay ahead.
        
         | walletdrainer wrote:
         | It is virtue signaling, especially considering the fact that
         | doing the hard to swallow thing of paying the ransom would
         | probably be the best outcome from a customer perspective.
         | 
         | Yes there are negative externalities in funding ransomware
         | operations, not paying is still much more likely to hurt your
         | customers than paying.
        
           | saberience wrote:
           | Paying ransomware fines is never the smart move to do unless
           | you happen to trust what cyber criminals tell you.
           | 
           | You send them the payment, they tell you they deleted the
           | data, but they also sell the data to 10 other customers over
           | the dark-web.
           | 
           | Why would you ever trust people who are inherently
           | trustworthy and who are trying to screw you? While also
           | encouraging further ransomware crimes in the future.
        
             | walletdrainer wrote:
             | It's a sliding scale.
             | 
             | If you don't pay, the odds they will publish your data are
             | closer to 100%. If you do pay, the odds have historically
             | been much closer to 0% than 100%
             | 
             | You aren't paying to be sure, but to improve your chances.
        
           | whimsicalism wrote:
           | Doing the positive externality thing at expense of your
           | bottom line is to be praised. It is not 'virtue signaling' -
           | it is actually _doing a virtuous thing_.
        
             | walletdrainer wrote:
             | _Very_ small positive externality at the expense of their
             | customers. Probably doesn't even come close to balancing
             | out.
             | 
             | Besides, if they were genuinely interested in positive
             | externalities they would be spending the money lobbying for
             | a ransomware payments ban and not donating to universities.
        
         | satisfice wrote:
         | What is the problem with virtue signaling? By all means signal
         | virtue! Perhaps you are concerned by cheap virtue signals,
         | which have little significance.
         | 
         | The point here is that this is an expensive virtue signal.
         | Although, it would be more effective if we knew how expensive
         | it was.
        
         | pjc50 wrote:
         | At the stage we're at, I would _far_ prefer virtue signalling
         | to the more widespread vice signalling.
        
         | dspillett wrote:
         | _> The donation is more or less virtue signalling rather than
         | actual insight._
         | 
         | I see it more as a middle finger to the perps: "look, we _can_
         | afford to pay, here, see us pay that amount elsewhere, but
         | _you_ aren 't getting it". It isn't signalling virtue as much
         | as it is signalling "fuck you and your ransom demands" in the
         | hope that this will mark them as not an easy target for that
         | sort of thing in future.
        
           | bonesss wrote:
           | It also serves as a proxy for a punishment. They are, from
           | one perspective, paying a voluntary fine based on their own
           | assessment of their security failings.
           | 
           | For customers it signals sincerity and may help dampen
           | outrage in their follow up dealings.
        
         | AlienRobot wrote:
         | I don't know what virtue signaling means. I think you mean they
         | just did it out of spite.
        
         | blitzar wrote:
         | They should have watched Ransom (1996).
         | 
         | https://www.youtube.com/watch?v=xllIU0lPgqs
        
           | technion wrote:
           | I was just thinking of this scene as I read their report.
        
         | Timpy wrote:
         | Yes but I think it's a good virtue to signal considering the
         | circumstances. If they paid the ransom that would signal that
         | ransoming this company works, incentivizing more ransoms. If
         | they refuse to pay the ransom it might signal that they care
         | more about money than they do integrity. Taking the financial
         | hit of the ransom, but paying it to something that signals
         | their values, is about the best move I can imagine.
        
         | marcosdumay wrote:
         | > Proper practices for protections are well established and
         | known
         | 
         | Endpoint security is a well known open problem for what no
         | sufficient practices and protections exist.
        
         | dominicrose wrote:
         | Virtue signaling is an insult that you can for example use
         | against greenwashing or against someone who pledged to donate a
         | lot of money to some charity but actually donated none or much
         | less. Hypocrisy is also a form of virtue signaling.
         | 
         | It's also a term you can use against political opponents
         | because it's much easier to speak well than to actually do
         | good.
         | 
         | Refusing to negociate with criminals and help fund security
         | seems like the proper long-term reaction for everyone.
        
         | whimsicalism wrote:
         | Requiring everyone to implement proper practices is one way of
         | addressing the problem, I might call it Sisyphean & impossible.
         | 
         | Making it illegal to pay ransom is likely a much easier to
         | implement and more effective solution.
         | 
         | And this isn't virtue signaling - they _literally did the
         | virtuous thing_ that is better for society at the expense of
         | their bottom line. That is just virtue.
        
       | pm2222 wrote:
       | Could this be aws s3?
        
         | dave1999x wrote:
         | yeh, I am skeptical about "third party"
        
         | thedougd wrote:
         | I'm thinking a SFTP or file sharing gateway. Think MoveIT,
         | GoAnywhere, ShareFile, etc.
         | 
         | IMO, these aren't safe to use anymore.
        
           | saberience wrote:
           | I was guessing it's a OneDrive, Google Drive, DropBox or
           | something.
           | 
           | Probably someone was phished and they still had access to an
           | old shared drive which still had this data. Total guess but
           | reading between the lines it could be something like this.
        
       | prodigycorp wrote:
       | If i was a customer id be pissed off, but this is as good as a
       | response you can have to an incident like this.
       | 
       | - timely response
       | 
       | - initial disclosure by company and not third party
       | 
       | - actual expression of shame and remorse
       | 
       | - a decent explanation of target/scope
       | 
       | i could imagine being cyclical about the statement, but look at
       | other companies who have gotten breached in the past. very few of
       | them do well on all points
        
         | walletdrainer wrote:
         | > as good as a response you can have to an incident like this.
         | 
         | From customer perspective "in an effort to reduce the
         | likelihood of this data becoming widely available, we've paid
         | the ransom" is probably better, even if some people will not
         | like it.
         | 
         | Also to really be transparent it'd be good to post a detailed
         | postmortem along with audit results detailing other problems
         | they (most likely) discovered.
        
           | croemer wrote:
           | Depends. Not paying ransom decreases the likelihood of being
           | attacked in the future.
        
             | walletdrainer wrote:
             | Probably not that significantly, these are primarily crimes
             | of opportunity. An attacker isn't likely to do much
             | research on the company until they already have access, and
             | that point they might as well proceed (especially since
             | getting hit a second time would be doubly awkward for the
             | company, presumably dramatically increasing the chances of
             | payment)
             | 
             | And selling the data from companies like Checkout.com is
             | generally still worth a decent amount, even if nowhere
             | close to the bigger ransom payments.
        
           | jacquesm wrote:
           | No, that would not help me as a customer. Because I would
           | never believe that that party would keep their word, besides,
           | it can't be verified. You'll have that shadow hanging around
           | for ever. The good thing is that those assholes now have less
           | budget to go after the next party. The herd is safe from
           | wolves by standing together, not by trying to see which of
           | their number should be sacrificed next.
        
             | walletdrainer wrote:
             | There's a very real difference between the data possibly
             | still being saved in some huge storage dump of a ransomware
             | group and being available for _everybody_ to exploit on a
             | leak site.
             | 
             | It's a sliding scale, where payment firmly pushes you in
             | the more comfortable direction.
             | 
             | Also, the uncomfortable truth is that ransomware payments
             | are very common. Not paying will make essentially no
             | difference, the business would probably still be incredibly
             | lucrative even if payment rates dropped to 5% of what they
             | are now.
             | 
             | If there was global co-operation to outlaw ransom payments,
             | that'd be great. Until then, individual companies refusing
             | to pay is largely pointless.
        
               | jacquesm wrote:
               | > It's a sliding scale, where payment firmly pushes you
               | in the more comfortable direction.
               | 
               | No, it pushes _you_ in a more comfortable direction, and
               | I 'm not you.
        
               | walletdrainer wrote:
               | Yes, but your concerns are less rooted in reality and
               | more in the fact that you find the idea of paying
               | ransomware groups repulsive. That's fine, but there's
               | rational analysis to be done here, and it often leads to
               | paying being the best option.
               | 
               | If your company gets hit by one of these groups and you
               | want to protect your customers, paying is almost always
               | the most effective way to do that. Someone who isn't
               | particularly interested in protecting their customers
               | probably wouldn't pay if the damage from not paying would
               | be lower than the cost of paying.
               | 
               | A third possibility is that you simply _feel_
               | uncomfortable about paying, which is fine, but it isn't a
               | particularly rational basis for the decision.
               | 
               | I think we can also fairly assume that the vast majority
               | of people have no strong feelings about ransomware, so
               | there's likely going to be no meaningful reputational
               | damage caused by paying.
        
           | tobyhinloopen wrote:
           | I strongly disagree. Paying the ransom will put everyone in
           | danger.
        
             | walletdrainer wrote:
             | I would totally agree with you if we lived in a
             | hypothetical world where ransomware payments aren't super
             | common anyway.
             | 
             | Until there is legislation to stop these payments, there
             | will be countless situations where paying is simply the
             | best option.
        
               | yreg wrote:
               | > Until there is legislation to stop these payments,
               | there will be countless situations where paying is simply
               | the best option.
               | 
               | Paying the ransom is not exactly legal, is it? Surely the
               | attackers don't provide you with a legitimate invoice for
               | your accounting. As a company you cannot just buy a large
               | amount of crypto and randomly send it to someone.
        
               | walletdrainer wrote:
               | Paying the ransoms is almost always legal in basically
               | all western countries unless the recipient has been
               | sanctioned.
               | 
               | > As a company you cannot just buy a large amount of
               | crypto and randomly send it to someone.
               | 
               | You can totally do that, why wouldn't you be able to?
        
               | yreg wrote:
               | Because its fraud. You cannot just take money out of the
               | company, you have to put something in your books.
        
               | walletdrainer wrote:
               | So you _obviously_ put "ransomware payment" in the books.
        
               | mapontosevenths wrote:
               | Most of the time the company doesnt pay directly.
               | 
               | They hire a third party, sometimes their cyber insurance
               | provider, to "cleanup" the ransomware. That third party
               | then pays another third party who is often located in a
               | region of the world with lax laws to perform the
               | negotiations.
               | 
               | At the end of the day nobody breaks any laws and the
               | criminals get paid.
        
           | rollcat wrote:
           | Never pay the ransom.
           | 
           | The extortionist knows they cannot prove they destroyed the
           | data, so they will eventually sell it anyway.
           | 
           | They will maybe hold off for a bit to prove their
           | "reputation" or "legitimacy". Just don't pay.
        
             | walletdrainer wrote:
             | If this is actually frequently happening, your claim should
             | be pretty easy to prove. Most stolen databases are sold
             | fairly publicly.
             | 
             | The ransom payments tend to be so big anyway that selling
             | the data and associated reputational damage is most likely
             | not worth the hassle.
             | 
             | Basic game theory shows that the best course of action for
             | any ransomware group with multiple victims is to act
             | honestly. You can never be sure, but the incentives are
             | there and they're pretty obvious.
             | 
             | The big groups are making in the neighbourhood of
             | $billions, earning extra millions by sabotaging their main
             | source of revenue seems ridiculous.
        
               | rollcat wrote:
               | > reputational damage
               | 
               | Whoa. You're a crime organization. The data may as well
               | "leak" the same way it leaked out of your victim's
               | "reputable" system.
        
               | walletdrainer wrote:
               | We're talking about criminal organisations that depend on
               | a certain level of trust to make any money at all.
               | 
               | Yes, the data _might_ still leak. It's absurd to suggest
               | that it's not _less likely_ to leak if you pay.
               | 
               | There's a reason why businesses very frequently arrive at
               | the conclusion that it's better to pay, and it's not
               | because they're stupid or malicious. They actually have
               | money on the line too, unlike almost everyone who would
               | criticise them for paying.
        
               | wordpad wrote:
               | Do you think ransomware groups do referrals to their
               | satisfied customers who paid and didn't have their data
               | leaked?
        
               | walletdrainer wrote:
               | Probably? They have pretty professional customer service
               | pages.
               | 
               | However they don't really need to because there are
               | plenty of documented cases, and the incident response
               | company you hire will almost certainly have prior
               | knowledge of the group you're forced to deal with.
               | 
               | If they had a history of fucking over their "customers",
               | the IR team you hired would know and presumably advise
               | against paying.
        
           | weird-eye-issue wrote:
           | Ah yes let's fund literal criminal groups so they have an
           | incentive to keep hacking people
        
             | walletdrainer wrote:
             | Completely useless take in the real world where these
             | payments are common, it makes no difference whatsoever if
             | an individual or even vast majority of victims stop paying.
             | Ransomware will remain incredibly lucrative until payments
             | are outlawed.
             | 
             | The cost of an attack like this is in the thousands of
             | dollars at most, the ransom payments tend to be in the
             | millions. The economics of not paying just don't add up in
             | the current situation.
        
               | weird-eye-issue wrote:
               | How do you know it isn't illegal when you pay the ransom?
               | 
               | You could very well be making a payment to a sanctioned
               | individual or country, or a terrorist organization etc.
        
               | walletdrainer wrote:
               | There are best practices for this, you normally hire a
               | third party to handle the negotiations, payment process
               | and the necessary due diligence.
               | 
               | For example the UK government publishes guidelines on how
               | to do this and which mitigating circumstances they
               | consider if you do end up making a payment to a
               | sanctioned entity anyway
               | https://www.gov.uk/government/publications/financial-
               | sanctio...
               | 
               | They directly state as follows:
               | 
               | > An investigation by the NCA is very unlikely to be
               | commenced into a ransomware victim, or those involved in
               | the facilitation of the victim's payment, who have
               | proactively engaged with the relevant bodies as set out
               | in the mitigating factors above
               | 
               | i.e you're not even going to be investigated unless you
               | try to cover things up.
               | 
               | This is a solved problem, big companies with big legal
               | departments make large ransomware payments every day. Big
               | incident response companies have teams of negotiators to
               | work through the process of paying, and to get the best
               | possible price.
        
           | gchamonlive wrote:
           | You mean as a customer you'd feel better if the company
           | victim of ransom would help fund the very group that put the
           | business and your data in jeopardy?
        
             | walletdrainer wrote:
             | Of course, it makes my data and my customers data less
             | likely to end up public on the internet.
             | 
             | It's not _great_ , but it's the least shitty option.
        
               | gchamonlive wrote:
               | What makes you think they won't get the money _and_ sell
               | the database in the dark web?
               | 
               | This is like falling victim to a scam and paying more on
               | top of it because the scammers promised to return the
               | money if you pay a bit more.
               | 
               | I see no likelihood game to be played there because you
               | can't trust criminals by default. Thinking otherwise is
               | just naive and wishful. Your data is out in the wild,
               | nothing you can do about that. As soon as you accept that
               | the better are your chances to do damage reduction.
        
               | walletdrainer wrote:
               | Their incentives are well known. You don't have to trust
               | them to assume that they will act rationally.
               | 
               | Picking up hundreds of thousands at best (very few
               | databases would be worth so much) when your main business
               | pays millions or tens of millions per victim simply isn't
               | worth it, selling the data would jeopardise their main
               | business which is orders of magnitude more profitable.
               | 
               | Absolutely no IR company will advise their clients to pay
               | if the particular ransomware group is known to renege on
               | their promises.
        
               | gchamonlive wrote:
               | Did some research and indeed there is a sort of "honor
               | among thieves" kinda vibes when it comes to ransom
               | attacks.
               | 
               | Still, it's illegal or quite bureaucratic in some places
               | to pay up.
               | 
               | And idk... It still feels like these ransom groups could
               | well sit on the data a while, collect data from other
               | attacks, shuffle, shard and share these databases, and
               | then sell the data in a way that is hard to trace back to
               | the particular incident and to a particular group, so
               | they get away with getting the ransom money and then
               | selling the db latter.
               | 
               | It's also not granted that even with the decrypt tools
               | you'd be able to easily recover data at scale given how
               | janky these tools are.
               | 
               | I don't know. I am less sure now than I was before about
               | this, but I feel like it's the correct move not to pay up
               | and fund the group that struck you, only so it can strike
               | others, and also risk legal litigations.
        
               | walletdrainer wrote:
               | > Still, it's illegal or quite bureaucratic in some
               | places to pay up.
               | 
               | I can't think of anywhere it would be illegal, but the
               | bureaucracy is usually handled by the incident response
               | company who are experts at managing these processes.
               | 
               | > It's also not granted that even with the decrypt tools
               | you'd be able to easily recover data at scale given how
               | janky these tools are
               | 
               | Most IR companies have their own decryption tools for
               | this exact purpose, they've reversed the ransomware
               | groups decryptors and plugged the relevant algos into
               | their own much less janky tools.
               | 
               | > And idk... It still feels like these ransom groups
               | could well sit on the data a while, collect data from
               | other attacks, shuffle, shard and share these databases,
               | and then sell the data in a way that is hard to trace
               | back to the particular incident and to a particular
               | group, so they get away with getting the ransom money and
               | then selling the db latter
               | 
               | Very few databases will be worth even $100k, ransoms tend
               | to run in the millions and sometimes tens of millions.
               | There have been individual payments of over $30M. Selling
               | the data just isn't worth it, even if you could get away
               | with it without sabotaging your main business. It'd like
               | getting a second job as a gas station attendant while
               | working for big tech in SF, possible but ridiculous.
               | 
               | > I don't know. I am less sure now than I was before
               | about this, but I feel like it's the correct move not to
               | pay up and fund the group that struck you, only so it can
               | strike others, and also risk legal litigations.
               | 
               | The UK government even has a website where they basically
               | say "yeah we understand you might need to make a payment
               | to a sanctioned ransomware group, it's totally fine if
               | you tell us". The governments accept that these payments
               | are necessary, to the point that they'll promise non-
               | enforcement of _sanctions_. I can't think of anywhere
               | you'd really be risking legal repercussions if you have
               | some reasonable IR company guiding you through the
               | process.
               | 
               | I totally get the concern about funding these groups, but
               | unfortunately the payments are so common at this point
               | (the governments even publish guidelines! That common)
               | that it simply doesn't make a difference if a few
               | companies refuse to pay.
        
               | gchamonlive wrote:
               | Makes a lot of sense. Thanks for taking the time for this
               | well thought-out response.
        
         | embedding-shape wrote:
         | > - timely response
         | 
         | Timely in what way? Seems they didn't discover the hack
         | themselves, didn't discover it until the hackers themselves
         | reached out last week, and today we're seeing them
         | acknowledging it. I'm not sure anything here could be described
         | as "timely".
        
           | prodigycorp wrote:
           | I have been doing a self Have I Been Pwned audit and, reading
           | many company blog posts, and it wasn't uncommon to see
           | disclosure _months_ after incidents.
        
             | embedding-shape wrote:
             | Yeah, that sucks, and I wouldn't call those "timely"
             | either. Is your point that "timely" is relative and depends
             | on what others are doing? Personally, "slow" is slow
             | regardless of how slow others are, but clearly some would
             | feel differently, that's OK too.
        
               | franga2000 wrote:
               | If one week is slow and three months is also slow, why
               | should a company switch from three months to one week?
               | 
               | To borrow from a different context, if eating meat every
               | day is being an evil animal abuser and being vegetarian
               | but liking cheese sauce on you pasta is being an evil
               | animal abuser, why should anyone consider eating less
               | meat?
               | 
               | Warning: not very well thought-out generalisation ahead
               | 
               | We need to be able to express nuance, otherwise
               | everything turns into a shitshow like, for example, the
               | current state of political and social discourse.
               | Americans will vote for privatisation because public
               | healthcare is "literally communism" and "communism is the
               | devil". Twitter users will vote for white supremacists
               | because they get called "literal nazis" for the big nose
               | jokes they occasionally make.
        
               | dpoloncsak wrote:
               | "Timely" is relative, right? If I build a house in a
               | week, that was done in a timely fashion, as it was done
               | faster than average,
               | 
               | If i build a house of cards in a week, that took way
               | longer than the average house of cards, and it would not
               | be fair to call it "timely".
               | 
               | In a world where most companies report breaches months
               | after the fact, yes, I think "last week we found out
               | about it and we're now confirming it" is fair. You need
               | to work with Law Enforcement, you need to confirm the
               | validity of the data and the hacker's claims, and that
               | they data they are ransoming is all they actually took.
               | You need to check the severity of the data they took. Was
               | it user/passes? Was there any trademarked processes, IP,
               | sensitive info? You need to ensure the threat actor is
               | removed from your environment, and the hole they got in
               | with is closed.
               | 
               | If you _choose_ to pay the ransom, you may need to work
               | even closer with LE to ensure you don 't get flagged for
               | aiding and funding criminals.
               | 
               | With them choosing _not_ to pay, I 'm sure they need to
               | clear that with legal still. Finance needs to be on
               | board. Can you actually call it a charitable donation for
               | a tax write-off if its under this sort of duress? (And
               | I'd assume there's other sort's of questions a SysAdmin
               | can't be expected to come up with examples for)
               | 
               | While ALL of this is happening, you can't announce your
               | actions. You can't put our a PR until you know for sure
               | you were compromised, what the scope was, and that any
               | persistence has been removed.
        
         | elAhmo wrote:
         | If we just let the companies go away with 'we are sorry' and
         | say that is as good as it gets, then this industry is up for
         | far more catastrophic situations in the future. Criminal
         | liability, refunds to customers, requirements from regulators
         | might move things in the right direction, but letting companies
         | have shitty practices by hoarding data they don't need and
         | putting customers at risk is definitely something that should
         | be looked at with more scrutiny.
        
           | troyvit wrote:
           | It depends on the crime though right? This was all legacy
           | data and from the description the worst thing they got was
           | contact information that's five years older or more
           | ("internal operational documents and merchant onboarding
           | materials at that time.").
           | 
           | For that level of breach their response seems about right to
           | me, especially waving the money in ShinyHunters' face before
           | giving it away to their enemies.
        
             | elAhmo wrote:
             | I agree, it depends, but this wouldn't be the first time
             | company underplayed (or simply lied) about the extent of
             | the breach. I am sure even if it was current data or a more
             | serious breach, the messaging would be similar from their
             | side.
        
               | troyvit wrote:
               | You bring up a good point ,and in that they don't really
               | _say_ what data leaked. "Just some old stuff nobody
               | uses."
        
       | dmoreno wrote:
       | When they say "The episode occurred when threat actors gained
       | access to this third party legacy system which was not
       | decommissioned properly. " for me it sounds like a not properly
       | wiped disk that got into the the bad guys hands. It would be
       | interesting to know more to be prepared for proper
       | decommissioning of hardware.
        
         | actionfromafar wrote:
         | Or a cloud server which was never turned off.
        
         | nektro wrote:
         | sounds like an S3 bucket that wasn't deleted
        
       | arbll wrote:
       | > The attackers gained access to a legacy, third-party cloud file
       | storage system.
       | 
       | I think the answer is ok but the "third-party" bit reads like
       | trying to deflect part of the blame on the cloud storage
       | provider.
        
         | zwnow wrote:
         | The whole codebase & tools at whatever company I ever worked at
         | was using 99% legacy stuff. Its wild...
         | 
         | Often times it would have been easier to rebuild the whole
         | project over trying to upgrade 5-6 year old dependencies.
         | 
         | Ultimately the companies do not care about these kinda
         | incidents. They say sorry, everyone laughs at them for a week
         | and then after its business as usual, with that one thing fixed
         | and still rolling legacy stuff for everything else.
        
           | weird-eye-issue wrote:
           | > Often times it would have been easier to rebuild the whole
           | project
           | 
           | Sure buddy, sure
        
             | zwnow wrote:
             | I inherited a few codebases as solo dev and I am confident
             | in my abilities to refactor each of them in 1-2 months
             | without issues.
             | 
             | I can imagine that in a team that might be harder, but
             | these are glorified todo apps. I am well aware that
             | complete rebuilds rarely work out.
        
             | mrguyorama wrote:
             | The company that bought mine spent two years trying to have
             | Team A rewrite a part of our critical service as a separate
             | service to make it more scalable and robust and to enable
             | it to do more. They wanted to do stupid things like "Lets
             | use GRPC because google does!" and "Django is slow" and
             | "database access is slow (but we've added like six
             | completely new database lookups per request for uh
             | reasons)"
             | 
             | They failed so damn bad and it's hilariously bad and I feel
             | awful for the somewhat competent coworker who was stuck on
             | that team and dealt with how awful it was.
             | 
             | Then we fired most of that team like 3 times because of how
             | value negative they have been.
             | 
             | Then my coworker and I rebuilt it in java in 2 months. It
             | is _100x faster_ , has almost no bugs, _accidentally_
             | avoided tons of data management bugs that plague the python
             | version (because java can 't have those problems the way we
             | wrote it) and I built us tooling to achieve bug for bug
             | compatibility (using trivial to patch out helpers), and it
             | is trivially scalable _but doesn 't need to because it's so
             | much faster_ and uses way less memory.
             | 
             | If the people in charge of a project are fucking
             | incompetent yeah nothing good will ever happen, but if you
             | have even semi-competent people under reasonable management
             | (neither of us are even close to rockstars) and the system
             | you are trying to rewrite has obvious known flaws, plenty
             | of time you will build a better system.
        
               | yieldcrv wrote:
               | but the issue wasn't python or django, RPC or REST
               | 
               | it was the ORM and the queries themselves
        
         | ryukoposting wrote:
         | For all their boasting, I can't help but wonder how their
         | response would have been different if the attackers actually
         | _had_ gotten their hands on sensitive data.
        
       | nashashmi wrote:
       | Sometimes cyber insurance will come to the rescue. That's why
       | companies Don't pay.
        
       | saberience wrote:
       | So, I used to work in the fintech world and it looks to me like
       | what was hacked was merchant KYB documents. I.e. when a merchant
       | signs up for a PSP they have to provide various documentation
       | about the business so the PSP can underwrite the risk of taking
       | on this business. I.e. some PSPs won't deal with porn companies
       | or travel companies or companies from certain regions etc.
       | 
       | This sort of data is generally treated very differently to the
       | actual PANs and payment information (which are highly encrypted
       | using HSMs).
       | 
       | So it's obviously shitty to get hacked, but if it was just KYB
       | (or KYC) type information, it's not harming any individuals. A
       | lot of KYB information is public (depending on country).
       | 
       | Fair play on them for being open about this.
        
         | globalise83 wrote:
         | It's not just business data though - usually it will include
         | ultimate beneficial owner and directors' passports, tax ID,
         | etc. So there is a risk of identity theft there of potentially
         | some very wealthy individuals.
        
       | globalise83 wrote:
       | "The system was used for internal operational documents and
       | merchant onboarding materials at that time"
       | 
       | To me it seems most likely that this is data collected during the
       | KYC process during onboarding, meaning company documents,
       | director passport or ID card scans, those kind of things. So the
       | risk here for at least a few more years until all identity
       | documents have expired is identity theft possibilities (e.g.
       | fraudsters registering their company with another PSP using the
       | stolen documents and then processing fraudulent payments until
       | they get shut down, or signing up for bank accounts using their
       | info and tax id).
        
         | saberience wrote:
         | Passport or ID card scans would never be be stored alongside
         | general KYB information, e.g. the standard forms PSPs use.
         | 
         | If you read between the lines of the verbiage here, it looks
         | like a general archived dropbox of stuff like PDF documents
         | which the onboarding team used.
         | 
         | Since GDPR etc, items like passports, driving license data etc,
         | has been kept in far more secure areas that low-level staff
         | (e.g. people doing merchant onboarding) won't have easy access
         | to.
         | 
         | I could be wrong but I would be fairly surprised if JPGs of
         | passports were kept alongside docx files of merchant onboarding
         | questionnaires.
        
           | globalise83 wrote:
           | docx files of merchant onboarding questionnaires
           | 
           | Why would merchants fill out docx files? They would submit an
           | online form with their business, director and UBO details,
           | that data would be stored in the Checkout.com merchants
           | database, and any supporting documents like passport scans
           | would be stored in a cloud storage system, just like the one
           | that got hacked.
           | 
           | If it was just some internal PDFs used by the onboarding
           | team, probably they wouldn't make such a big announcement.
        
             | bostik wrote:
             | If you are dealing with financial services (and payment
             | provider _most certainly would_ ), you will be forced to
             | interface with infuriating vendor vetting and onboarding
             | questionnaire processes. The kinds that would make Franz
             | Kafka blush, and CIA take notice for their enhanced
             | interrogation techniques.
             | 
             | The sheer amount of effectively useless bingo sheets with
             | highly detailed business (and process) information boggles
             | the mind.
             | 
             | Some time ago I alluded to existence and proliferation of
             | these questionnaires in another context:
             | https://bostik.iki.fi/aivoituksia/random/crowdstrike-
             | outage-...
        
             | saberience wrote:
             | Another person wrote a good response to this but yeah, I
             | would say, as someone that has worked in fintech, you will
             | almost always have some integrations with systems which
             | require Microsoft word format, as well as obviously PDFs,
             | CSVs, etc.
             | 
             | Every country you operate in has different rules and
             | regulations and you have to integrate with many third party
             | systems as well as governmental entities etc, and sometimes
             | you have to do really really technically backwards things.
             | 
             | Some integrations I remember were stuff like cron jobs
             | sending CSV files via FTP which were automatically picked
             | up.
        
           | nebezb wrote:
           | > Passport or ID card scans would never be be stored
           | alongside general KYB information
           | 
           | How do you qualify this statement? Did you mean "should
           | never"? Even then, you're likely overstating things. Nothing
           | prevents co-locating KYC/KYB information. On the contrary,
           | most businesses conducting KYB are required to conduct UBO
           | and they're trained to combine them both. Register as a
           | director/officer with any FSI in North America and you'll
           | see.
        
             | saberience wrote:
             | Fair point! Yeah, it could be. Although Europe tends to be
             | stricter about those things, i.e. where PII is stored. I
             | was trained way back in like 2018 about ensuring I never
             | have any PII stored on my PC and around the requirements of
             | the GDPR in terms of access to information and right to
             | delete etc.
        
       | lateforwork wrote:
       | This should be law. Any company that is hacked should be required
       | by law to make a sizeable investment in a third-party security
       | research company.
        
         | yreg wrote:
         | Security reasearch lab during the day day, ransomware org at
         | night conspiracy coming soon.
        
           | blitzar wrote:
           | "Firefighter arson is a persistent phenomenon involving a
           | very small minority of firefighters who are also active
           | arsonists ... It has been reported that roughly 100 U.S.
           | firefighters are convicted of arson each year."
        
             | ishouldbework wrote:
             | Interesting, that number is much higher than I would
             | expect.
        
           | squigz wrote:
           | It wouldn't require a conspiracy for these companies to
           | 'invest' in security companies they have ties to. Throw in
           | tax incentives and loopholes and whatnot and it turns out not
           | to hurt the original company at all.
        
       | amelius wrote:
       | Isn't it illegal in many countries to pay a ransom?
       | 
       | (If not, why not?)
       | 
       | (Imho, it would make sense if only the state can pay ransoms)
        
         | vntok wrote:
         | Typically, companies wouldn't really pay an actual ransom like
         | unmarked bills stacked in a paper bag and thrown out from a
         | bridge onto a passing barge.
         | 
         | Instead, you would pay (exhorbitant) _consulting_ fees to a
         | foreign-based  "offensive security" entity, and most of the
         | time get some sort of security report that says if you'd simply
         | plug this and that holes, your systems would now be reasonably
         | safe.
        
           | amelius wrote:
           | > Typically, companies wouldn't really pay an actual ransom
           | like unmarked bills stacked in a paper bag and thrown out
           | from a bridge onto a passing barge.
           | 
           | Yes, that's why cryptocurrencies are a gift from heaven for
           | these hacker groups.
           | 
           | Therefore, even if paying ransom money (somehow) must be
           | legal, maybe it should be illegal to use crypto for it. You
           | don't want to make it too easy to run this type of criminal
           | business.
        
       | dizhn wrote:
       | Giving me MBA vibes. Will they close up shop and go when it's the
       | remaining 75% of their infrastructure next time?
        
       | nalekberov wrote:
       | At this point I think we all understand that we will never be
       | able to trust any company in this world with our data.
       | 
       | In most cases they can get away with "We are sorry" and "Trust
       | me, bro" attitude.
        
       | vntok wrote:
       | > Checkout.com hacked, refuses ransom payment, donates to
       | security labs
       | 
       | This submission's edited title reads like the "target headline"
       | from The Office (US):
       | 
       | > Scranton Area Paper Company - Dunder Mifflin - _Apologizes_ -
       | to Valued Client - Some Companies - Still Know - How - Business -
       | is - Done
        
       | betimd wrote:
       | I have checkout.me domain, and it is for sale. email me if you
       | want to get it.
        
       | zetanor wrote:
       | They're "sorry", they want to be "transparent" and "accountable",
       | they want your "trust", but not enough to publicly explain what
       | happened or what kind of data got taken (is a full CRM backup
       | from 6 years ago considered "legacy" "internal operational
       | documents"?). There's not even a promise to produce more
       | information about their mistake.
       | 
       | > Jimmy, where did the cookies go?
       | 
       | > Something that was on the counter is gone! I don't know how! It
       | might not even be my fault! But I'm sorry!
       | 
       | What kind of an apology is that? It's not. It's marketing for the
       | public while they contact the "less than 25% of [their] current
       | merchant base" whose (presumably sensitive) information was
       | somehow in "internal operational documents".
       | 
       | Oh but also took some of what they charge their customers and
       | gave that (undisclosed?) sum away to a university. They must be
       | _really_ sorry.
        
       | antonyh wrote:
       | I don't think they meant OXCIS, that seems to be a centre for
       | Islamic Studies
       | https://en.wikipedia.org/wiki/Oxford_Centre_for_Islamic_Stud...
       | 
       | I can't quite work out who they donated to - it seems there are a
       | number of Oxford Uni cybersec/infosec units. Any idea which one?
        
         | saberience wrote:
         | I guess it just means this: https://www.cybersecurity.ox.ac.uk/
         | 
         | "Cyber Security Oxford is a community of researchers and
         | experts working under the umbrella of the University of
         | Oxford's Academic Centre of Excellence in Cyber Security
         | Research (ACE-CSR)."
        
           | antonyh wrote:
           | Probably, I'm not sure it's not https://gcscc.ox.ac.uk/
           | 
           | I don't think it's https://www.infosec.ox.ac.uk/
           | 
           | There's also this AI security research lab,
           | https://lasr.plexal.com/
           | 
           | It looks like Oxford are quite busy in this space.
        
       | joshmn wrote:
       | It's notable that there were ShinyHunters members arrested by the
       | FBI a few years ago. I was in prison with Sebastian Raoult, one
       | of them. We talked quite a bit.
       | 
       | The level of persistence these guys went through to phish at
       | scale is astounding--which is how they gained most of their
       | access. They'd otherwise look up API endpoints on GitHub and see
       | if there were any leaked keys (he wasn't fond of GitHub's
       | automated scanner).
       | 
       | https://www.justice.gov/usao-wdwa/pr/member-notorious-intern...
        
         | ants_everywhere wrote:
         | > (he wasn't fond of GitHub's automated scanner
         | 
         | Do you mean they thought the scanner was effective and weren't
         | fond of it because it disrupted their business? Or do you mean
         | they had a low opinion of the scanner because it was
         | ineffective?
        
           | joshmn wrote:
           | He would complain that it disrupted their business, and that
           | it doesn't catch all keys--it catches the big ones that he
           | certainly found to be very valuable.
        
         | rkozik1989 wrote:
         | Generally speaking, humans are more often than not the weakest
         | link the chain when it comes to cyber security, so the fact
         | that most of their access comes from social engineering isn't
         | the least bit surprising.
         | 
         | They themselves are likely to some extent the victims of social
         | engineering as well. After all who benefits from creating
         | exploits for online games and getting children to become script
         | kiddies? Its easier (and probably safer) to make money off of
         | cyber crime if your role isn't committing the crimes yourself.
         | It isn't illegal to create premium software that could in
         | theory be use for crime if you don't market it that way.
        
           | Thorrez wrote:
           | >It isn't illegal to create premium software that could in
           | theory be use for crime if you don't market it that way.
           | 
           | Who is making money off of selling premium software, that's
           | not marketed as for cybercrime, to non-governmental
           | attackers? Wouldn't the attackers just pirate it?
        
             | dheatov wrote:
             | Feel like IDA Pro counts.
        
             | ronsor wrote:
             | This type of software is being sold on many forums, both on
             | the clearnet and darknet.
             | 
             | > Wouldn't the attackers just pirate it?
             | 
             | Sometimes the software is SaaS (yes, even crimeware is SaaS
             | now). In other cases, it has heavy DRM. Besides that,
             | attackers often want regular updates to avoid things like
             | antivirus detections.
        
           | stingraycharles wrote:
           | Reminds me of a co-founder of an adtech company I know. They
           | are a platform that buys inventory using automated trading,
           | mostly mobile, and they realized that most of their customers
           | were all clickfraud / scammers / etc. He didn't want to go
           | into too much detail.
           | 
           | But he shrugged it off.
           | 
           | I bet there are quite a few shops online that may sell gift
           | cards that are used in money laundering schemes. Bonus points
           | if they accept bitcoin.
           | 
           | But those are all quite implicitly used by cybercrime. I can
           | imagine there are quite a few tools at their disposal that
           | are much more explicit.
        
             | jjk7 wrote:
             | Worked at a place that used to do a kind of arbitrage
             | between adclicks and traditional print. A large percent of
             | traffic, especially mobile, was obviously either toddlers
             | or bad bots; yet we were billing our customers for the
             | 'engagement'.
        
           | aeternum wrote:
           | I'm not sure this is very fair because humans are often not
           | given the right tools to make a good decision. For example:
           | 
           | To gift to a 529 regardless of the financial institution, you
           | go to some random ugift529.com site and put in a code plus
           | all your financial info. This is considered the gold
           | standard.
           | 
           | To get a payout from a class-action lawsuit that leaked your
           | data, you must go to some other random site (usually some
           | random domain name loosely related to the settlement recently
           | registered by kroll) and enter basically more PII than was
           | leaked in the first place.
           | 
           | To pay your fed taxes with a credit card, you must verify
           | your identity with some 3rd party site, then go to yet
           | another 3rd party site to enter your CC info.
           | 
           | This is insane and forces/trains people to perform actions
           | that in many other scenarios lead to a phishing attack.
        
             | thewebguyd wrote:
             | Don't forget magic links in email for auth and password
             | resets training people that it's OK to click links in
             | emails.
             | 
             | Yes, we've (the software industry) been training people to
             | practice poor OpSec for a very long time, so it's not
             | surprising at all that corporate cybersecurity training is
             | largely ineffective. We violate our own rules all the time
        
               | wholinator2 wrote:
               | Has anyone invented an alternative to that yet? I could
               | imagine emailing you a code to enter in a specific part
               | of a site to get you to the right link, but then people
               | could just scan all the codes. To solve that you could
               | make the codes long 64bit strings but then that's too
               | hard to remember so you could just provide functionality
               | to automatically include that info to get you to the site
               | but then that's just a link again.
               | 
               | Maybe if you expected everyone to copy-paste the info
               | into the form? That might work
        
               | aeternum wrote:
               | This is the closest I've seen (pretty new):
               | https://github.com/WICG/email-verification-protocol
        
               | Razengan wrote:
               | There should be a way to tell you who I am without
               | telling you who I am.
               | 
               | Phone/laptop based biometrics?
        
               | thewebguyd wrote:
               | I think this is the way forward. We shouldn't continue
               | relying on email (or proving ownership over an email
               | address for that matter) as identity.
               | 
               | Public/private keys with a second factor (like
               | biometrics) as identity I think is a good option. A way
               | to announce who you are, without actually revealing your
               | identity (or your email address).
               | 
               | Tbh that's how all the age verification crap should work
               | too for the countries that want to go down that road
               | instead of having people upload a copy of their actual ID
               | to some random service that is 100% guaranteed going to
               | get breached and leaked.
               | 
               | We need psuedoanonymous verification
        
         | red-iron-pine wrote:
         | > _The level of persistence these guys went through to phish at
         | scale is astounding--which is how they gained most of their
         | access._
         | 
         | explain
        
         | edm0nd wrote:
         | damn that sucks they threw you in fed prison for running a
         | sports streaming website.
         | 
         | did you have bulletproof hosting and they caught you through
         | other means like going after your payment providers or you made
         | opsec mistakes or how exactly?
         | 
         | was it a website like Sportsurge where it simply linked to
         | streams or did it actually host the streams?
        
       | WhereIsTheTruth wrote:
       | They are downplaying the severity of the data theft, which most
       | likely includes user identification documents, the most dangerous
       | type of breach, since it directly enables identity theft
       | 
       | Reading between the lines reveals the severity they're
       | obfuscating, with contradictions:
       | 
       | > This incident has not impacted our payment processing platform.
       | The threat actors do not have, and never had, access to merchant
       | funds or card numbers.
       | 
       | > The system was used for internal operational documents and
       | merchant onboarding materials at that time.
       | 
       | > We have begun the process to identify and contact those
       | impacted and are working closely with law enforcement and the
       | relevant regulators
       | 
       | They stress that "merchant funds or card numbers" weren't
       | accessed, yet acknowledge contacting "impacted" users, this begs
       | the question: how can users be meaningfully "impacted" by mere
       | onboarding paperwork?
        
         | thrdbndndn wrote:
         | Yeah, they keep repeating what wasn't accessed but never say
         | what actually was.
        
       | another_twist wrote:
       | I dont understand some of the cynicism in this thread. This is a
       | bold move and I support. It is impossible to not have incidents
       | like this and until theres a proper post mortem we wont really
       | know how much of it can be attributed to carelessness. They could
       | have just kept is hush hush but I appreciate that they came
       | forward with it and also donated money to academia. The research
       | will be open and everybody benefits.
        
         | whimsicalism wrote:
         | It's hacker news, people feel that cynicism elevates them in
         | some way.
        
       | begueradj wrote:
       | If everyone refuses to pay, such incidents would largely reduce.
        
       | skeeter2020 wrote:
       | Interesting spin for a core infrastructure provider who deals
       | with the most sensitive part of most businesses, tries to bury
       | the lede of getting hacked with a tale of their virtuous refusal
       | to pay a ransom; is this supposed to make them attractive or just
       | have people skip the motivating events? Swing and a miss in my
       | books.
        
       | JohnMakin wrote:
       | While a nice gesture, I'm not so certain that if I were one of
       | their "less than 25%" of customers impacted that I'd be so
       | pleased. Why not compensate them instead?
        
       | whimsicalism wrote:
       | Bravo - I find this incredibly courageous and will consider being
       | their customer in the future.
        
       | yieldcrv wrote:
       | _> The threat actors do not have, and never had, access to
       | merchant funds or card numbers._
       | 
       |  _> The system was used for internal operational documents and
       | merchant onboarding materials at that time._
       | 
       | Ah so just all of your KYC for founders, key personnel, and the
       | corporation to impersonate business accounts
       | 
       |  _> We estimate that this would affect less than 25% of our
       | current merchant base._
       | 
       | Yikes, this affects 25% of their current merchant base.
        
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