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eBay hit with massive security breach, asks all users to change passwords (updated)

Posted on May 21, 2014 by Dissent

Well, we knew this was coming after a marker for an alert was noticed on PayPal this morning, but now it’s definite: Ebay is asking users to change passwords.

Russell Brandom reports:

Later today, eBay will begin asking all of its 112 million customers to change their passwords, in the wake of a newly discovered database breach. The breach compromised a database containing a list of encrypted passwords that, once released in the wild, could potentially be decrypted through publicly available tools. As a result, eBay is asking users to change passwords as soon as possible. Officials say no financial data was implicated, and the company hasn’t found any evidence of unauthorized activity resulting from breach.

Read more on The Verge.

The press release, seen on BusinessWire, reads:

SAN JOSE, Calif.–(BUSINESS WIRE)–eBay Inc. (Nasdaq: EBAY) said beginning later today it will be asking eBay users to change their passwords because of a cyberattack that compromised a database containing encrypted passwords and other non-financial data. After conducting extensive tests on its networks, the company said it has no evidence of the compromise resulting in unauthorized activity for eBay users, and no evidence of any unauthorized access to financial or credit card information, which is stored separately in encrypted formats. However, changing passwords is a best practice and will help enhance security for eBay users.

Information security and customer data protection are of paramount importance to eBay Inc., and eBay regrets any inconvenience or concern that this password reset may cause our customers. We know our customers trust us with their information, and we take seriously our commitment to maintaining a safe, secure and trusted global marketplace.

Cyberattackers compromised a small number of employee log-in credentials, allowing unauthorized access to eBay’s corporate network, the company said. Working with law enforcement and leading security experts, the company is aggressively investigating the matter and applying the best forensics tools and practices to protect customers.

The database, which was compromised between late February and early March, included eBay customers’ name, encrypted password, email address, physical address, phone number and date of birth. However, the database did not contain financial information or other confidential personal information. The company said that the compromised employee log-in credentials were first detected about two weeks ago. Extensive forensics subsequently identified the compromised eBay database, resulting in the company’s announcement today.

The company said it has seen no indication of increased fraudulent account activity on eBay. The company also said it has no evidence of unauthorized access or compromises to personal or financial information for PayPal users. PayPal data is stored separately on a secure network, and all PayPal financial information is encrypted.

Beginning later today, eBay users will be notified via email, site communications and other marketing channels to change their password. In addition to asking users to change their eBay password, the company said it also is encouraging any eBay user who utilized the same password on other sites to change those passwords, too. The same password should never be used across multiple sites or accounts.

Update: eBay has posted an FAQ on the incident.

Category: Business SectorHackOf NoteU.S.

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