P2P-related breach affects high-profile clients from Wagner Resource Group

Technorati Tag:

Date Reported:
7/9/08

Organization:
Wagner Resource Group

Contractor/Consultant/Branch:
None

Victims:
Clients*

*Most notably Supreme Court Justice Stephen G. Breyer, which has been well publicized.

Number Affected:
~2,000

Types of Data:
"names, dates of birth and Social Security numbers"

Breach Description:
"The Washington Post today ran a story I wrote on a data breach of a local investment firm that exposed the names, birth dates and Social Security numbers of some of the Washington area's most powerful attorneys, including Supreme Court Justice Stephen Breyer."

Reference URL:
SecurityFix
Washington Post
United Press International
NBC Universal, Inc

Report Credit:
Brian Krebs, Washington Post

Response:
From the online sources cited above:

Sometime late last year, an employee of a McLean investment firm decided to trade some music, or maybe a movie, with like-minded users of the online file-sharing network LimeWire while using a company computer
[Evan] P2P file sharing and other client software use can pose a very significant risk in most companies.  It is typically an easy risk to address however.  A mixture of any one or more of the following controls can help to mitigate the risk; information security training and awareness, egress traffic monitoring and filtering, intrusion detection/prevention, and hardened workstations (i.e. removal of administrative access) to name a few.

In doing so, he inadvertently opened the private files of his firm, Wagner Resource Group, to the public.
[Evan] This is a common oversight.  LimeWire and other P2P file sharing applications are wonderful tools for doing what they are designed to do.  Before allowing their use (or any other software), an organization must evaluate the risks in doing so.  If you intend to use or allow the use of LimeWire in your organization, understand how the software works and how it is configured.  During the install you will be prompted for the "Save Folder and Shared Folders".  Be careful what you choose, and be careful about what information you put in these locations in the future.  Most organizations that are aware of risks just choose not to allow P2P use.



That exposed the names, dates of birth and Social Security numbers of about 2,000 of the firm's clients, including a number of high-powered lawyers and Supreme Court Justice Stephen G. Breyer.
[Evan] The high-profile nature of this breach is what has grabbed headlines all last week.

Of the 2,000 records from Wagner Resource Group that were found online, 700 included Social Security numbers, names and birth dates, while other records included only one or two of those details.

The breach was not discovered for nearly six months.
[Evan] This is another danger posed by information leaked through P2P.  Once information has leaked, how does an organization detect that it has been leaked?  There is no longer any control.

A reader of washingtonpost.com's Security Fix blog found the information while searching LimeWire in June.
[Evan] I wonder why the reader did not notify the authorities and/or Wagner at the time of its discovery.  Maybe he/she did.  I don't know.

Robert Boback, chief executive of Tiversa, the company hired by Wagner to help contain the data breach, said such breaches are hardly rare.

About 40 to 60 percent of all data leaks take place outside of a company's secured network, usually as a result of employees or contractors installing file-sharing software on company computers.
[Evan] Really?!  I would have not guessed that the percentage would be so high.  Interesting.

"We've seen a lot of instances where a company will be working on a product that's not even released yet, and the diagrams for that product are already out on the Net," Boback said.
[Evan] Very good point.  It isn't just personally identifiable information that is leaked, there are plenty of instances where intellectual property (IP) is exposed.  I have read estimates that as much as 80% or organizational assets globally are intangible (information, knowledge, etc.).

"This case is unique because of the high profile of the targets. The individuals on this list are at a very high risk, almost imminent, of identity theft."

Tiversa officials found that more than a dozen LimeWire users in places as far away as Sri Lanka and Colombia downloaded the list of personal data from the Wagner network.

"To me, this was devastating," said Phylyp Wagner, founder of the investment firm. "I didn't even know what peer-to-peer was. I do now."
[Evan] This is a big problem!  Corporate leaders must be made aware of the risks surrounding the information for which they are ultimately responsible for.

Wagner said his company has contracted with FirstAdvantage of Poway, Calif., which last week sent out letters notifying affected clients of the breach and offering each six months of free credit-report monitoring.

He emphasized that the peer-to-peer disclosure never endangered his clients' financial records, which are stored by a separate company.
[Evan] Maybe not their financial records, but it did affect some people's financial status (at least temporarily).

But that may be small consolation to several lawyers on the list who said they recently experienced unexplained financial activity.

"This may explain why two weeks ago I got a $9,000 cellphone bill from AT&T," said Steven Agresta, a partner with the law firm Alston & Bird.

Someone had opened a phone account using his date of birth and Social Security number, but with a different address.

this morning I heard from reader Christopher Lynt, a patent attorney from Virginia whose personal data was included in the file exposed via P2P.

He told me that last July, an identity thief used his SSN and birth date to have $1,000 wired to Mexico from Lynt's bank and credit accounts.

Commentary:
This certainly isn't the first time we have read about P2P file sharing network exposures.  If your organization can find a way to use the technology without posing an unacceptable risk, then fine.  If not, then don't allow the technology to be used.  Seems pretty plain and simple.

There is much work to be done.  At Wagner and elsewhere.

Past Breaches:
Unknown

 
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