Case 5.2 Business Case: Lax Security at LinkedIn Exposed On any social network, most users mistakenly believe that their privacy is only as good as the privacy of their most careless-or temporary-friend. In fact, weak passwords and hackers can deprive users of all privacy. When the business social networking site LinkedIn was hacked (Figure 5.13), hackers stole 6.5 million passwords and e-mail addresses. This data breach was discovered by IT security experts when they found millions of Linkedin passwords posted on a Russian underground web- site (Figure 5.14). Experts also determined that a hacker named Dwdm was asking underground members for help in cracking the stolen 0-6 in www.linkedin.com-Most Pop in World's Largest Professiona... X Linked in Email address Connect, share ideas, and discover Kevin Britland/Alamy LinkedIn Data Breach Hackers breached LinkedIn's network and stole 6.5 million of its customers' passwords, which had been only lightly encrypted. They were posted to a Russian hacker forum for all to see and steal. Costs Hack attack led to 6.5 million e-mail addresses and passwords being compromised. Over $1 million in costs associated with forensic work, investigating, and addressing the breach. Seven-figure investments in IT infrastructure to update and harden network and data security. FIGURE 5.13 LinkedIn data breach overview. FIGURE 5.14 LinkedIn did not discover its own data breach and, when informed of it, delayed notifying members. passwords. Within only 2 days, most passwords were cracked. Why were Linkedin's passwords cracked so quickly? The simple answer is that LinkedIn was using an outdated encryption method instead of up- to-date industry-standard encryption. As a result, members' passwords were really only camouflaged-and crackable. LinkedIn Criticized for Bad Data Security What could hackers do to your online accounts if they had your pass- words for 48 hours and you did not know? That is what LinkedIn allowed to happen by waiting 2 days before notifying members that their passwords had been stolen. The company took a lot of criticism