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Sony Sued Over PSN Security Issues, PSN Terms Exclude Liability


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196w 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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#271 - leukotic - 195w ago
leukotic's Avatar
If this was anon then we at least have some hope our data and personal info isn't being used maliciously, but since anonymous is anonymous, anybody could have placed their slogan on Sony's servers, perhaps to mislead and to put blame on anon for the hack.

However this brings up another valid point that may prove it was them. Lets say it was anon, and lets just say for a moment all they did was place their slogan on Sony's servers. Up front this would seem harmless, however since Sony would have no idea what they saw or took while in their servers, they had to take every caution and assume all the data was stolen since there was somebody poking around in there. Perhaps all that was done is somebody hacked in, placed the slogan in an area which would trigger this suspicion, then leave and watch as all hell breaks loose at Sony while they analyze their entire system.

It's possible the intruder intentionally went into the area of the servers which contains the personal info and CC info to make Sony think they were stolen, just to insure everything that has happened, would happen. This whole event has severely damaged Sony in many ways, if this was anon's doing it would make sense because this has turned out to be one of the best ways to hit Sony where it hurts.

I guess only time will tell, if the personal info and CC info of millions of people is out there in the wild, we will see a massive rise in identity theft and CC fraud. If that happens then we could probably assume it wasn't anon just some cracker looking to score big. But if nothing happens with our personal info/cc info, then we could safely assume that anon was behind this, or at least somebody else who just wanted to hurt Sony.

#270 - elser1 - 195w ago
elser1's Avatar
well there you go, if me or you tried this we would be thrown in jail.. stop sales of their products in your country us.. a week on!! no psn as promised..

#269 - Pretikewl - 195w ago
Pretikewl's Avatar
Government: We demand answers Sony!
Sony: You'll wait like everyone else.
Government: WTF!?!

I think that pretty much sums this up.

#268 - j3edi - 195w ago
j3edi's Avatar
Thanks for your thanks. Been on the site for a while now, Mainly just browsing the forums.

Will try to contribute a bit more from now on. Great site with a great community, Keep up the good work.

#267 - PS3 News - 195w ago
PS3 News's Avatar
Thanks for the update j3edi, I have promoted it to the main page now and +Rep!

#266 - barrybarryk - 195w ago
barrybarryk's Avatar
if it was members from anonymous they'd have posted the info publicly same as their ACS Law & HB Gary hacks, as it's pretty much all anonymous believe in. So even if it was someone who thinks they're anonymous they really haven't got a clue what anonymous are all about.

#265 - Osirisx - 195w ago
Osirisx's Avatar
well how about they start finding the keys for 3.56+ instead of apparently stealing all our personal info.

#264 - Chivafighter - 195w ago
Chivafighter's Avatar
Is Anonymous really going to attack the servers and leave their slogan on the Sony server? That is a stupid move on their part, If they did which i highly doubt.

#263 - j3edi - 195w ago
j3edi's Avatar
Today Sony's Senior Director of Corporate Communications & Social Media Patrick Seybold has posted an update on their PSN response to the U.S. House of Representatives via the PlayStation Blog.

To quote: Today, the Subcommittee on Commerce, Manufacturing and Trade of the U.S. House of Representatives Committee on Energy and Commerce held a hearing in Washington, DC on "The Threat of Data Theft to American Consumers."

Kazuo Hirai, Chairman of the Board of Directors of Sony Computer Entertainment America, submitted written answers to questions posed by the subcommittee about the large-scale, criminal cyber-attack we have experienced. We wanted to share those answers with you (click [Register or Login to view links]).

In summary, we told the subcommittee that in dealing with this cyber attack we followed four key principles:

1. Act with care and caution.
2. Provide relevant information to the public when it has been verified.
3. Take responsibility for our obligations to our customers.
4. Work with law enforcement authorities.

We also informed the subcommittee of the following:

  • Sony has been the victim of a very carefully planned, very professional, highly sophisticated criminal cyber attack.
  • We discovered that the intruders had planted a file on one of our Sony Online Entertainment servers named "Anonymous" with the words "We are Legion."
  • By April 25, forensic teams were able to confirm the scope of the personal data they believed had been taken, and could not rule out whether credit card information had been accessed. On April 26, we notified customers of those facts.
  • As of today, the major credit card companies have not reported any fraudulent transactions that they believe are the direct result of this cyber attack.
  • Protecting individuals' personal data is the highestpriority and ensuring that the Internet can be made secure for commerce is also essential. Worldwide, countries and businesses will have to come together to ensure the safety of commerce over the Internet and find ways to combat cybercrime and cyber terrorism.
  • We are taking a number of steps to prevent future breaches, including enhanced levels of data protection and encryption; enhanced ability to detect software intrusions, unauthorized access and unusual activity patterns; additional firewalls; establishment of a new data center in an undisclosed location with increased security; and the naming of a new Chief Information Security Officer.
  • We told the subcommittee about our intent to offer complimentary identity theft protection to U.S. account holders and detailed the "Welcome Back" program that includes free downloads, 30 days of free membership in the
  • PlayStation Plus premium subscription service; 30 days of free service for Music Unlimited subscribers; and extending PlayStation Plus and Music Unlimited subscriptions for the number of days services were unavailable.

We are working around the clock to have some PlayStation Network services restored and we'll be providing specific details shortly. We hope this update is helpful to you, and we will continue to keep you posted as we work to restore our network and provide you with both the entertainment and the security you deserve.

More PlayStation 3 News...

#262 - System Repairs - 195w ago
System Repairs's Avatar
Due to PSN being down and the data that has been compromised, Sony is now facing many lawsuits from various countries:

[Register or Login to view links]

[Register or Login to view links]

[Register or Login to view links]

All because people want to be able to backup games. In my view, I believe the majority of people don't have the money to pay for the high cost of video games and Sony wouldn't be loosing out anyways. Many games are garbage and at $50-60, I wouldn't want even if I got them for free. I do support the good games and recommend everyone to do so. Both Microsoft and Nintendo look like they're not bothering to waste the time and money to combat this.

As far as I can remember this started out with emulators for the PC and mod-chips for PS1.

 

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