SecurID breach cost RSA $66m - In 2nd quarter alone

[Jake Kouns <jkouns () opensecurityfoundation org>]

http://www.theregister.co.uk/2011/07/27/rsa_security_breach/

The security breach that targeted sensitive data relating to RSA's SecurID
two-factor authentication product has cost parent company EMC $66m in the
second quarter, *The Washington Post* has reported.

The king's ransom was spent after RSA issued a vaguely worded
letter<http://www.theregister.co.uk/2011/03/18/rsa_breach_leaks_securid_data/>
in
March warning that undisclosed information had been stolen from its network
that “could potentially be used to reduce the effectiveness of a current
two-factor authentication implementation as part of a broader attack.”

The company came under blistering
criticism<http://www.theregister.co.uk/2011/03/24/rsa_securid_news_blackout/>
for
not providing additional details to customers, which include some of the
world's biggest banks, media companies, government agencies and government
contractors.

In a Tuesday conference call to discuss EMC's financial results, executive
vice president David Goluden said the company spent the $66m to cover a
variety of costs, including transaction monitoring for nervous customers and
offering replacement tokens for those who asked for them.

“We incurred an accrued cost associated with investigating the attack,
hardening our systems and working with customers to implement our
remediation programs,” Goluden was quoted as saying.

EMC also said it alerted customers within hours of the breach and believes
that the company was targeted for data on its defense and government
agencies, rather than financial information, *The Washington Post*
article<http://www.washingtonpost.com/blogs/post-tech/post/cyber-attack-on-rsa-cost-emc-66-million/2011/07/26/gIQA1ceKbI_blog.html>
 said.

Since the breach, reports have emerged that attacks on at least two defense
contractors -Lockheed
Martin<http://www.theregister.co.uk/2011/06/06/lockheed_martin_securid_hack/>
 and L3 Communications<http://www.theregister.co.uk/2011/06/01/military_contractor_2nd_rsa_securid_hack/>
-
were aided by information stolen from RSA.

RSA has yet to say precisely what information was stolen, leading to
speculation it includes the seeds used to generate one-time passwords on
SecurID tokens. RSA has instead offered customers generic security advice,
such as “enforce strong password and pin policies,” and “re-educate
employees on the importance of avoiding suspicious emails.”

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