Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Sony's network outage, cyberattack mean long road to recovery

By | May 6, 2011, 5:50am PDT

Sony CEO Howard Stringer has apologized for being hit with an outage and a cyberattack, but with an additional attack likely the company faces a long road ahead.

Stringer said in a letter:

Let me assure you that the resources of this company have been focused on investigating the entire nature and impact of the cyber-attack we’ve all experienced and on fixing it. We are absolutely dedicated to restoring full and safe service as soon as possible and rewarding you for your patience. We will settle for nothing less.

To date, there is no confirmed evidence any credit card or personal information has been misused, and we continue to monitor the situation closely. We are also moving ahead with plans to help protect our customers from identity theft around the world. A program for U.S. PlayStation Network and Qriocity customers that includes a $1 million identity theft insurance policy per user was launched earlier today and announcements for other regions will be coming soon.

And then Stringer apologized. Overall, it’s a stand-up approach to the hack and outage. The problem is that another attack is highly likely, according to CNet News.

Overall, Sony can explain its Playstation Network and Qriocity shutdowns, its defenses and steps to prevent a future cyberattack. But time will tell if Sony’s defenses are enough.

For Sony customers, it makes sense to stick with the company. However, Sony’s problem will be future companies. For instance, I wasn’t on the Playstation Network and this incident means that I’ll be in no hurry to try it out anytime soon—if at all. Sony will face a major perception and reputation issue going forward.

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Sony's network outage, cyberattack mean long road to recovery
rhonin Updated - 8th May 2011
@betelgeuse68
True.
My son is an avid COD/BO/etc... player and routinely runs online group excursions - spending hours with his online "friends".... He is actually pretty good (now if he was as good with his school work.. )

One thing I did straight away with Sony (and online I actually do this for most ) is use a Visa/AMEX gift card for the online credit card stuff. Works perfectly fine.

One thing Larry is right on, it will be a loooong road till I get to the point I trust Sony for any online material.
0 Votes
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For some reason....
Economister 6th May 2011
all my TVs came from Sony. In general however, I avoid their products, because I do not like how they try to control and fleece their customers by using proprietary technology. Come to think of it, I avoid another company like that also. happy
@Economister
and experience. Nothing wrong with that. happy
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Sure Larry
betelgeuse68 6th May 2011
Except I suspect you aren't a gamer, or you only have enough time/curiosity to be on a single platform, e.g., XBox Live.

Going off on a tangent, the Playstation3 is a BluRay reference platform. More specifically you aren't likely to get burned by discs (aka "movies") that can't be played due to Sony's aggressive support of the BluRay firmware found inside the PS3. But don't just take my word for it, watch a segment of Revision3's "HD Nation":

http://revision3.com/hdnation/appletvreview

Start watching at about 5 minutes and 50 seconds, make sure you see the Tweet sent to them by one dude regarding his recent experiences with his BluRay player (@ 5 minutes and 58 seconds).

Then listen to the response from the excellent Robert Heron (guy with glasses).

And once someone gets a PS3 for BluRay movie playback, you pick up a game, then there's a patch for the game which is only obtainable by having an account on the Playstation Network. However patches don't require a credit card. Even so, it's a slippery slope and once you get used to it, it is hard to simply ignore it.

Sure, streaming over the Net is great, but the only streaming I've seen that is BluRay like in quality is Vudu. But you can really rack up a tab using it vs. having BluRay discs sent to you via Netflix.

Monster.com has had three major data breaches over the years but I doubt people have stopped using the site to get a job:

http://voices.washingtonpost.com/securityfix/2009/01/monstercom_breach_may_bring_mo.html

Pundits like to put on their drama hats but in the end the masses forget and then it becomes business as usual.

My 2 cents,
-M
@betelgeuse68
True.
My son is an avid COD/BO/etc... player and routinely runs online group excursions - spending hours with his online "friends".... He is actually pretty good (now if he was as good with his school work.. )

One thing I did straight away with Sony (and online I actually do this for most ) is use a Visa/AMEX gift card for the online credit card stuff. Works perfectly fine.

One thing Larry is right on, it will be a loooong road till I get to the point I trust Sony for any online material.
The other factor here is that I suspect that few companies out there are any better prepared than Sony was to begin with. The fact is that Sony now has a clear and present danger to protect from, and they will surely take great pains to prevent it from happening in the future.

Will another company learn quite as well from Sony's failure? My experience is that we learn best from our own mistakes. I think this means that Sony will be a better bet going forward precisely because they have been hacked.
Sony should have been put out of business when their decision maker(s) decided it was a good idea to infect with rootkits the PCs of people when they tried to use them to watch the "extended content" advertised on the covers of legally bought CDs.

I will never, ever, buy anything with the sony name on it (or made by sony).

A year's worth of credit insurance is a joke; 10 years would be a good start.

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