Scam of the day – August 7, 2014 – Russian gang steals 1.2 billion user names and passwords

It was revealed yesterday that a Russian gang of about 20 hackers committed what may be the largest data theft in history by stealing 1.2 billion user names and passwords along with 500 million email addresses.  This particular gang has been operating since 2011, but this is their largest data theft.  The data breach was discovered by a computer security company, Hold Security who indicated that the data breach involved more than 420,000 websites around the world including those of large companies as well as small websites.  The companies hacked included companies involved in the auto industry, real estate, oil industry, consulting firms, care rental businesses, hotels, computer hardware companies, software companies and the food industry.  The gang used a technique to hack these websites that I have warned you about for two years.  They exploited security vulnerabilities in the software used to create websites, such as Adobe Cold Fusion, which has proven to be vulnerable in the past (although at this point in time, it is still too soon to know exactly which vulnerable programs were exploited) that permit a type of hacking called an SQL injection in which the hacker is able to inject his data collection software into the targeted website which can often go undetected for long periods of time.  The hacker then retrieves the collected information and then either uses it themselves for identity theft and fraudulent purposes or sell the information on black market websites to other criminals.

TIPS

The first thing to remember is that you are only as safe as the security of the weakest company or website that holds your personal information including your user name and password.  Although it is an inconvenience, it is important to maintain separate, unique passwords and user names for all of your accounts and to change them somewhat frequently.  If you use the same password for a small retailer and your online banking, you become extremely vulnerable to having your bank account hacked if the retailer with which you do business is hacked.  Also, do not store your user name, password or credit card information on any website.  It may be convenient for you, but it is also extremely convenient for identity thieves as well.  You can expect a wave of “spear phishing” by which you will receive emails that appear to come from someone you know and trust when in reality it is coming from an identity thief.  Many of these spear phishing emails will have links and attachment that contain keystroke logging malware that, when downloaded, will permit the identity thief to steal all of your personal information from your computer and use it to make you a victim of identity theft.  It is for this reason that I always advise you  not to download an attachment or click on a link unless you have confirmed and are absolutely positive that the email is legitimate.  This is an important story and I will update you as more information becomes known.