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

Yet another hack, yet another delay in reporting it

By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
June 9, 2011, 3:57 PM ET

FORTUNE — Given the number of recent, high-profile network security breaches, it might be tempting to call 2011 the Year of the Hack. The danger is that there’s a good chance 2012 might be even worse.

First 4 digits of a credit card
Image via Wikipedia

The underlying reason for this is the “lax security posture of many large-scale global companies,” the malware expert Tim Armstrong told Security News Daily. It has, he added, “now become almost trivial for a motivated group or individual to find a way in.”

The latest known hack, which occurred more than a month ago, was announced this morning: Citigroup (C) said information for about 210,000 customers, or 1% of its credit-card holders in North America, was stolen. The information included card numbers and contact information including email addresses. The bank said other data, such as Social Security numbers, birth date, expiration dates and card verification numbers were not compromised.

In what is becoming a disturbingly familiar pattern, Citi decided not to issue any warnings about the breach when it occurred, or for several weeks following. In fact, it might still be mum if the Financial Times had not broken the story late last night, prompting Citi to confirm it. The company issued a statement to the media, but as of Thursday afternoon, there is no obvious mention on Citigroup’s website of the attack, including on its press-release page.

Likewise, Sony (SNY) decided to wait a week to inform its customers in April when its PlayStation Network was breached, reportedly by the “hacktivist” group Anonymous. Earlier this week, RSA Security, a division of EMC (EMC), offered to replace millions of customer secure ID tokens after it became known that a hack into its system back in March exposed its customer, Lockheed Martin (LMT), to a security breach.

Lawmakers are becoming frustrated. U.S. Sen. Patrick Leahy (D-Vt.) this week introduced the Personal Data Privacy and Security Act, which would make it a crime for companies to conceal data breaches, and would create a national standard for reporting hacks, replacing the many disparate state laws now in place.

It’s hard to cite any particular reason why there have been so many high-profile hacks recently. Partly, it could be that in the endless cat-and-mouse game between hackers and security teams, the hackers have jumped ahead.

But it’s also no doubt partly trendmongering. The Citi hackers are apparently pure criminals, motivated by financial gain. Many of the other recent hacks are so-called “grey-hat” attacks. That is, they’re done for publicity, for thrills, just to show off, or to reveal how bad an organization’s computer security is. Often they’re ostensibly done in support of a cause, as when LulzSec claimed it hacked PBS’s Web servers to protest Frontline’s coverage of the Bradley Manning/Wikileaks case. That group is apparently responsible for several other recent hacks as well, including on Fox News and Sony.

LulzSec has claimed credit for several hacks on Sony’s systems in the wake of the PlayStation breach. The latest came just this morning, when the group reportedly claimed to have lifted 54 megabytes of source code from the Sony Developer Network, along with maps of Sony BMG’s internal network. The data was posted to Pirate Bay, the Bittorrent tracker site.

The PlayStation hack likely motivated the subsequent attacks – the company’s systems clearly are woefully insecure, making them a tempting target.

Whatever the motivations though, it seems clear that organizations including private companies and governments going to have to invest more in security, and they’re going to have to start being more forthcoming when their systems are breached.

About the Author
By Dan Mitchell
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
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
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
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Stock futures sink while oil spikes as the U.S. Navy looks to squeeze Iran’s economy and break its grip on the Strait of Hormuz
PoliticsOil
Stock futures sink while oil spikes as the U.S. Navy looks to squeeze Iran’s economy and break its grip on the Strait of Hormuz
By Jason MaApril 12, 2026
1 hour ago
A major U.S. gasoline production hub is in such a severe drought that its refineries may be hobbled. ‘We are actively praying for a hurricane’
Energyfossil fuels
A major U.S. gasoline production hub is in such a severe drought that its refineries may be hobbled. ‘We are actively praying for a hurricane’
By Michael Phillis and The Associated PressApril 12, 2026
3 hours ago
U.K. won’t take part in Trump’s planned blockade of Hormuz strait
PoliticsIran
U.K. won’t take part in Trump’s planned blockade of Hormuz strait
By Alex Wickham and BloombergApril 12, 2026
4 hours ago
Hungarian voters oust Viktor Orbán, a close ally of Trump and Putin, despite late campaign push from JD Vance
EuropeElections
Hungarian voters oust Viktor Orbán, a close ally of Trump and Putin, despite late campaign push from JD Vance
By Justin Spike, Sam McNeil and The Associated PressApril 12, 2026
4 hours ago
Blazing hot IPOs, an AI agent craze, and a new word for ‘token’: Here’s what’s happening in the world of Chinese AI
AsiaChina
Blazing hot IPOs, an AI agent craze, and a new word for ‘token’: Here’s what’s happening in the world of Chinese AI
By Nicholas GordonApril 12, 2026
4 hours ago
Iran’s crumbling economy is the regime’s greatest weakness with prices up 40% since the war began while authorities worry about making payroll
EconomyIran
Iran’s crumbling economy is the regime’s greatest weakness with prices up 40% since the war began while authorities worry about making payroll
By Jason MaApril 12, 2026
5 hours ago

Most Popular

'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
Politics
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
By Fortune EditorsApril 11, 2026
1 day ago
A 93-year-old refused to sell her home to the Masters golf course that’s spent $280 million on expansion: ‘Money ain’t everything’
Real Estate
A 93-year-old refused to sell her home to the Masters golf course that’s spent $280 million on expansion: ‘Money ain’t everything’
By Fortune EditorsApril 12, 2026
13 hours ago
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
Economy
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
By Fortune EditorsApril 12, 2026
17 hours ago
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
Future of Work
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
By Fortune EditorsApril 11, 2026
2 days ago
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
Real Estate
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
By Fortune EditorsApril 11, 2026
2 days ago
2 years ago, Saudi Arabia quietly canceled the ‘petrodollar’ deal with America that wired the world economy for 50 years. Then war broke out in Iran
Energy
2 years ago, Saudi Arabia quietly canceled the ‘petrodollar’ deal with America that wired the world economy for 50 years. Then war broke out in Iran
By Fortune EditorsApril 7, 2026
5 days 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.