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Sony Sued Over PSN Security Issues, PSN Terms Exclude Liability


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173w ago - Update #2: [Register or Login to view links] has reported that Canadian Natasha Maksimovic has also filed suit (PDF) against Sony via McPhadden Samac Tuovi LLP for the recent PSN security breach.

Update: [Register or Login to view links] now reports that Sony's database may already be on sale in an online bazaar, stating that that low-level cybercriminals using "carder" online forums were offering to sell a database of 2.2 million credit-card numbers taken during the PlayStation Network breach.

As a result of yesterday's confirmation from Sony that PSN account information has been compromised, today class action lawsuits are forming against the corporation despite a [Register or Login to view links] that states Sony is not liable for loss of data.

To quote: "We exclude all liability for loss of data or unauthorised access to your data, Sony Online Network account or Sony Online Network wallet and for damage caused to your software or hardware as a result of using or accessing Sony Online Network," the terms state.

According to the documentation, the first of many defendants is Kristopher Johns, 36, of Birmingham, Alabama.

To quote from [Register or Login to view links]: "Sony sued for PlayStation Network data breach

Like clockwork, the first lawsuit resulting from the security breach of the personal data of more than 75 million Sony PlayStation Network customers has been filed.

The suit was filed today on behalf of Kristopher Johns, 36, of Birmingham, Ala., in the U.S. District Court for the Northern District of California. Johns accuses Sony of not taking "reasonable care to protect, encrypt, and secure the private and sensitive data of its users."

He also believes Sony took too long to notify him and other customers that their personal information had been exposed. Because of that, the complaint alleges, Sony did not allow its customers "to make an informed decision as to whether to change credit card numbers, close the exposed accounts, check their credit reports, or take other mitigating actions."

The lawsuit is asking for monetary compensation and free credit card monitoring, and is seeking class action status.

Yesterday, Sony warned customers of its PlayStation Network and Qriocity service that their personal information--including customer names, addresses, e-mail addresses, birthdays, PlayStation Network and Qriocity passwords, and user names, as well as online user handles--was obtained illegally by an "unauthorized person" between April 17 and 19. The company says there is "no evidence" that credit card information was compromised, but it can't be sure yet.

In the aftermath of the breach Sony has temporarily turned off PlayStation Network and Qriocity, contracted with an outside security firm to investigate the intrusion on its network, and started to rebuild its system and security.

Johns' complaint echoes the concerns of Sen. Richard Blumenthal, a Connecticut Democrat. Blumenthal yesterday wrote a letter to Jack Tretton, president and chief executive of Sony Computer Entertainment America, saying he was troubled that the company had not notified customers sooner about the breach. He also called for Sony to provide affected customers with financial data security services, including free access to credit reporting services for two years to protect against identity theft."

Also from [Register or Login to view links], to quote: "Sony Sued for PSN Security Breach - Class action lawsuit filed this morning against SCEA.

A class action lawsuit was filed against Sony a day after the company publicly admitted that personal information from PlayStation Network was compromised by a security breach. The lawsuit was filed by the Rothken Law Firm today in a California court and alleges Sony "failed to take reasonable care to protect, encrypt, and secure the private and sensitive data."

Yesterday, Sony said it believes an unauthorized person obtained PSN user information, including members' names, addresses, birthdays, and login passwords. The company said there was no evidence that credit card information was stolen, but did not rule out that possibility.

"We brought this lawsuit on behalf of consumers to learn the full extent of Sony PlayStation Network data security practices and the data loss and to seek a remedy for consumers. We are hopeful that Sony will take this opportunity to learn from the network vulnerabilities, provide a remedy to consumers who entrusted their sensitive data to Sony, and lead the way in data security best practices going forward," said Ira P. Rothken an attorney who filed the class action complaint.

"Sony's breach of its customers' trust is staggering. Sony promised its customers that their information would be kept private. One would think that a large multinational corporation like Sony has strong protective measures in place to prevent the unauthorized disclosure of personal information, including credit card information. Apparently, Sony doesn't," commented J.R. Parker, co-counsel in the case.

The lawsuit seeks monetary compensation for the data loss and "loss of use of the Sony PlayStation Network, credit monitoring, and other relief according to proof."












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leukotic's Avatar
#311 - leukotic - 172w ago
Since they now claim it is the 31st I bet games like Brink, releasing on the 10th of this month, are going to sell horribly on the PS3 due to it being a online only game.

B4rtj4h's Avatar
#310 - B4rtj4h - 172w ago
So much for the mail he send that it would be restored this week :S. Ah well... let's hope it's for the better!

j3edi's Avatar
#309 - j3edi - 172w ago
Seems like larger game companys are starting to feel the Psn outage.. quote from Sven (exec at Capcom)

"I'm frustrated and upset by it for a number of reasons.

As a consumer, I also play games online on PS3, which I can't do... and likely my personal information is also compromised. Secondly I like to buy things in the PlayStation store and that I can't do right now.

On a related note, as an executive responsible for running a business, the resulting outage obviously costing us hundreds of thousands, if not millions of dollars in revenue that were planned for within our budget. These are funds we rely on to bring new games to market for our fans.

In short, the hackers appear to be trying to "punish" Sony for some perceived injustice, and they've been effective in that I suppose. But they're also punishing millions of other consumers and businesses which makes it impossible to be sympathetic to their "cause"."

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PS3 News's Avatar
#308 - PS3 News - 172w ago
Update: The [Register or Login to view links] has now posted the following message regarding their PSN restoration timeline update, to quote:

"I know you all want to know exactly when the services will be restored. At this time, I can't give you an exact date, as it will likely be at least a few more days. We're terribly sorry for the inconvenience and appreciate your patience as we work through this process."

Today Bloomberg (linked above) reports that Sony expects PSN services, including Qriocity, to be fully restored by May 31, 2011.

To quote: "Sony Corp.'s PlayStation Network and Qriocity online services remain shut as of today, Shigenori Yoshida, a Tokyo-based spokesman said. Sony is uncertain when it can resume the services, Yoshida said by phone today.

The company is in the process of adopting an improved security system and its plan to restart the services fully by May 31 is unchanged, he said. Sony shut down the PlayStation Network and Qriocity services April 20 because of possible data theft by hackers.

The maker of PS consoles had planned to restart partial operations within a week after boosting the level of security system, the company said May 1."

More PlayStation 3 News...

DemonoidMaster's Avatar
#307 - DemonoidMaster - 172w ago
I've had a real change of heart about this now.. if this was anonymous attack and not cyber thieves, then its quite brilliant really.. it exposes sony as the idiots they are,cost them billions of dollars,ruins there reputation,loses them customers and as anonymous claims they didnt steal info anyway.. hahahaha sony.. brilliant absolutely brilliant..

i don't mind so much now if its anonymos and the info wasnt stolen.. a month or 2 with no psn is fine if its costing saony billions.. i'll just catch up on all the games i have to finish offline and get the trophies.. at least i can update my games now..
Yeah, Anonymous

1- just did it 4 teh lulz,
2- just did it to make Sony jelly... hurr,
3- just wanted to prove that WE have the power to stand up against any company &
4- they be trollin' sony ...LULZ (aka. saying they'd hack the PSN and then it happens... but they say they didn't do it... so yeh, sony is getting trololollololol'd [which then means sony is mad... lol])

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