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LinkedIn Data Breach Costs $1M

By   /  August 8, 2012  /  No Comments

by Angela Guess

Warwick Ashley of Computer Weekly reports that LinkedIn’s recent data breach has cost the company more than one million dollars. He writes, “LinkedIn says the forensic investigation and other recovery costs of the data breach in June could have topped $1m. The professional social network confirmed that “some” of the stolen passwords posted online by a hacker correspond to accounts on the professional networking site.The confirmation came after reports that 6.5 million encrypted stolen passwords had been posted on a Russian web forum, and that hackers were working on decrypting them.”

He goes on, “The stolen passwords were encrypted using an outdated SHA-1 hash function created by the US National Security Agency. The cost of the breach was revealed by the Steve Sordello, chief financial offer at LinkedIn, in a conference call with journalists and analysts about the firm’s second quarter financial results. He said LinkedIn continued to strengthen its security and is expected to add $2m to $3m in costs in the current quarter toward those efforts, according to reports. Since the breach, LinkedIn has improved password-strengthening measures and enhanced the security of its infrastructure and data, said chief executive Jeff Weiner in the conference call.”

Read more here.

photo credit: LinkedIn

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