advertisement
advertisement

This is page 2 of:

T-Mobile Data Breach Raises Retail M-Commerce Concerns

June 10th, 2009

The surprise came this week when T-Mobile took the unusual step of publicly confirming that the posted data had indeed been taken from a secure area of a T-Mobile server. But T-Mobile said it’s not a concern because officials there “believe possession of this alone is not enough to cause harm to our customers.”

Fair enough. This is implying—appropriately—that if the cyber thief actually had the kind of juicy customer information that he/she implies he/she has, a sample of that would have been posted instead of the relatively innocuous lines of code that was published.

If this was a serious ransom attempt, the seller would certainly have to disclose more details to any prospective buyer so at least a sample might as well be disclosed upfront. (How such a public random offer could work is another mystery, as the seller would almost certainly have to assume that some of the prospective buyers would be undercover Secret Service agents. But that’s another issue.)

USA Today had a nice take on another part of the statement. T-Mobile’s statement said: “At this moment, we are unable to disclose additional information in order to protect the integrity of the investigation, but customers can be assured if there is any evidence that customer information has been compromised, we would inform those affected as quickly as possible.” That prompted USA Today to ask: “If you’re a T-Mobile patron, your mind should now be at ease, right? According to T-Mobile, until you otherwise hear from them, you can discount Pwnmobile’s claims that he has been pilfering from the T-Mobile’s databases ‘for some time.’”

But it gets better. T-Mobile then added to its statement, saying that the document was “copied” by Pwnmobile and that the document “did not get into his hands via a hack,” according to the USA Today story, which then quotes that same supplemental T-Mobile statement as saying—with a presumed USA Today paraphrase–that T-Mobile’s “investigators can’t yet say for certain how Pwnmobile got his mitts on a copy of the document.”

Wait a second. If T-Mobile doesn’t know how this document got out, how can it say with such certainty how it did not get out? On what basis are they ruling out that someone hacked in and grabbed that file? Surely they can’t be relying solely on server logs as that’s the first thing that an intruder would alter.

It doesn’t help that T-Mobile’s owner, Deutsche Telekom, confirmed last year a data breach grabbing some 17 million records. Could the file in question have been part of that heist? Do bad security habits run in the family?

For years, T-Mobile has been among the most aggressive telecom companies in the area of tracking customer locations, using technology that has allowed them to pinpoint more precisely and in different ways than others, which might explain why they’re such an attractive target.

But no matter how the T-Mobile situation turns out—and please don’t rule out the possibility that we’ll never officially hear how it turns out—this should be something that all major retailers need to seriously consider as they move into M-Commerce. This isn’t to say that they shouldn’t make those moves, but that they have to insist that their new partners take data as seriously as they do. (pause) Ok, perhaps I should rephrase that last line.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.