• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Dyn

Device Makers Face Legal Trouble Over Internet of Things Attack

Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
October 25, 2016, 9:10 AM ET
472321912
Smart appliances in network. Concept for Internet of Things.Photograph by Getty Images/iStockphoto

Who should be held responsible for last week’s security breach that took out parts of the Internet?

That question is becoming more pressing as regulators and the public begin to grasp the implication of the first major “Internet of things” attack, in which hackers hijacked millions of everyday devices such as security cameras and printers, and cut off access to major websites like Amazon and Twitter for hours at a time.

Increasingly, the security community is focusing on the role of the device makers, whose products contained a major security flaw. Namely, the companies did not require consumers to change a default password, which is what made it so easy for hackers to conscript so many Internet-connected devices into the botnet army that carried out last week’s attack.

Some of the companies, which include little-known Chinese manufacturers but also familiar names like Panasonic and Xerox, have begun a recall of the devices. But for now, many of their products remain out in the wild with their software “unpatched.” That means they remain compromised. Worse, hackers have released the source code to control the botnet army, meaning future attacks using devices of this nature are all but certain.

This raises the question of whether the device makers should be held legally responsible. Even though they had no role in directing last week’s attack on the Internet, such an attack was not hard to foresee—especially since there have been reports of compromised cameras, and other Internet-enabled devices, for years.

"Virtually an entire company’s product line has…been turned into a botnet that is now attacking the United States" https://t.co/Vyob4GDlzd

— Matt Pearce 🦅🇺🇸 (@mattdpearce) October 21, 2016

According to Michael Zweiback, an attorney with Alston & Bird and a former cyber-crime prosecutor, legal action is most likely to come in the form of lawsuits, and investigations by the Federal Trade Commission and state attorneys general. In a phone interview with Fortune, he said the government agencies are in a position to sue the companies selling these devices for dangerous products and deceptive marketing.

Get Data Sheet, Fortune’s technology newsletter.

A harder question is whether U.S. consumers who purchased the compromised devices, which also include network routers and baby monitors, can bring lawsuits of their own.

While class action lawyers may be watching the situation closely, a legal victory would be no sure thing. Even though the companies appear to have been negligent by failing to introduce tougher password protection, consumers would still have to show they were harmed. And right now the test for showing harm is unclear.

We need to talk about cybersecurity:

According to Zweiback, courts are trying to make sense of a major Supreme Court privacy case last year called Spokeo, which held that consumers must show “concrete” harm to collect damages. In the case of a consumer who bought a security camera susceptible to hacking, it’s unclear if they would be able to collect.

The situation is different for Dyn, the Internet service company that was the direct target of last week’s attack by the millions of compromised devices, since the firm had to directly absorb the cost of the attack. Dyn did not reply to a voice message from Fortune about whether it plans to pursue legal action against the device makers.

 

About the Author
Jeff John Roberts
By Jeff John RobertsEditor, Finance and Crypto
LinkedIn iconTwitter icon

Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Blackstone’s Steve Schwarzman built a program to teach young leaders about China. It’s harder to get into than Harvard
C-SuiteFinance
Blackstone’s Steve Schwarzman built a program to teach young leaders about China. It’s harder to get into than Harvard
By Shawn TullyMay 2, 2026
22 minutes ago
In this handout photo provided by U.S. Central Command, U.S. forces patrol the Arabian Sea near M/V Touska on April 20, 2026, after firing upon the Iranian-flagged vessel that the U.S. accused of attempting to violate the U.S. naval blockade of Iranian ports near the Strait of Hormuz. (Handout Photo by the U.S. Navy via Getty Images)
PoliticsIran
The Iran war has turned the world’s shipping straits into a chessboard—and the U.S. aims to box out China from the Panama Canal to the Malacca Strait
By Jordan BlumMay 2, 2026
1 hour ago
Trump says a ‘final proposal’ for a taxpayer-funded takeover of Spirit Airlines is under consideration
PoliticsAirline industry
Trump says a ‘final proposal’ for a taxpayer-funded takeover of Spirit Airlines is under consideration
By Michelle L. Price, Rio Yamat and The Associated PressMay 1, 2026
9 hours ago
U.S. to withdraw 5,000 troops from Germany as Trump feuds with Merz over the Iran war
EuropeGermany
U.S. to withdraw 5,000 troops from Germany as Trump feuds with Merz over the Iran war
By Ben Finley and The Associated PressMay 1, 2026
9 hours ago
EBay soars on report that GameStop is preparing a takeover bid
Investingecommerce
EBay soars on report that GameStop is preparing a takeover bid
By Spencer Soper, Cecilia D'Anastasio and BloombergMay 1, 2026
10 hours ago
ExxonMobil CEO Darren Woods, far right, listens as U.S. President Donald Trump,left, speaks during a meeting with oil company executives in the East Room of the White House on Jan. 9. President Trump is aiming to convince oil executives to support his plans in Venezuela, a country whose energy resources he says he expects to control for years to come. US forces seized Venezuelan president Nicolas Maduro in a sweeping military operation on January 3, with Trump making no secret that control of Venezuela's oil was at the heart of his actions.
EnergyIran
Exxon Mobil CEO sees ‘more to come’ on price spikes from Iran war as Exxon, Chevron beat on earnings despite plunging profits
By Jordan BlumMay 1, 2026
11 hours ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
19 hours ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
2 days ago
The U.S. economy is booming — just not where 50 million Americans live
Commentary
The U.S. economy is booming — just not where 50 million Americans live
By Derek KilmerMay 1, 2026
23 hours ago
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
5 days ago
Current price of oil as of May 1, 2026
Personal Finance
Current price of oil as of May 1, 2026
By Joseph HostetlerMay 1, 2026
19 hours ago
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
Law
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.