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The
Washington Post
December
19, 2005
Security
Software Firm's Customer Database Hacked
Guidance
Software Inc. -- a leading provider of software used to diagnose
hacker break-ins -- has itself been hacked, exposing financial and
personal data connected to thousands of law enforcement officials
and network-security professionals.
Guidance alerted customers to the incident in a letter sent last
week, saying it discovered Dec. 7 that hackers had broken into a
company database and made off with about 3,800 customer credit card
numbers. The Pasadena, Calif.-based company said that the incident
occurred sometime in November and that it is working with the U.S.
Secret Service on a more detailed investigation.
A spokesman for the Secret Service confirmed the investigation
but declined to comment further.
Hackers got access to company employees' names, addresses,
telephone numbers, credit card numbers, card expiration dates and
the three-digit verification numbers on the backs of credit cards,
according to Guidance.
Michael G. Kessler, president of New York City-based
computer-forensics investigative firm Kessler International,
received a letter notifying him that the company's American Express
card was among those compromised by the attackers. Kessler received
the notice from Guidance at the same time a company credit bill
arrived with what he said was $20,000 in unauthorized charges for
pay-per-click advertising at Google.com.
"I just got our American Express bill and nearly fell out of
my chair,"
Kessler said. "You'd think Guidance would be the last
company this kind of thing would happen to."
Guidance's EnCase software is used by hundreds of security
researchers and law enforcement agencies worldwide, including the
Secret Service, the FBI and New York City police. John Colbert, the
company's chief executive, said Secret Service and FBI customers
were among those whose information was included in the hacked
database, but he declined to say whether credit card information
belonging to those agencies was compromised.
FBI officials could not be reached for comment.
"This certainly highlights the fact that intrusions can
happen to anybody and that nobody should be complacent about
security," Colbert said. He declined to discuss further details
of the attack, citing the ongoing investigation.
The company alerted all of its customers less than two days after
discovering the break-in and told them it would no longer store
customer credit card data, Colbert said. Guidance had stored
customer records in unencrypted databases and indefinitely retained
customers' three-digit verification codes, according to Colbert and
the notification letter sent to customers.
Merchant guidelines published by both Visa and MasterCard require
sellers to encrypt customer credit card databases and to discard
verification numbers after using them in a transaction. The penalty
for violating those policies can be as high as $500,000 per
incident.
Another security professional who got the notification letter
said he was surprised that Guidance did not detect the intrusion for
nearly two weeks, a lapse in time that could make it much more
difficult to catch the perpetrators.
"Unfortunately, most cyber crimes require being worked very
quickly in order to gather data before it is purged either by
attackers or just in the normal course of business," said Doug
Rehman, president of Rehman Technology Services Inc. in Mount Dora,
Fla., who learned that his credit card and personal data had been
exposed.
"Hopefully, this incident will be a call for our community
to wake up, particularly the vendors who ought to be among the
forefront of in dealing with security issues," Rehman said.
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