Data breach costs LinkedIn up to $1 million

Share this article:

Due to one of the year's largest reported data breaches, business networking site LinkedIn has announced that it already has taken up to a $1 million hit.

During its second-quarter earnings call on Thursday, LinkedIn CFO Steve Sordello said the costs involved with recuperating from the incident so far range from $500,000 to $1 million, which is going toward forensic work and “other elements” relating to the breach.

According to the call, the 175-million-member company continues to strengthen its website's security to protect members and is expected to add $2 million to $3 million in costs in the current quarter toward those efforts.

“Since [the breach], we have redoubled our efforts to ensure the safety of our member account on LinkedIn by further improving password-strengthening measures and enhancing the security of our infrastructure and data,” Jeff Weiner, CEO of LinkedIn, said during the call. “The health of our network as measured by number of growth and engagement remains as strong as it was prior to the incident.”

Earlier this year, attackers dumped 6,458,020 encrypted LinkedIn passwords on a Russian forum seeking assistance in decoding them.

The stolen passwords were camouflaged using an outdated cryptographic hash function, SHA-1, created by the National Security Agency. In addition to this weakness, LinkedIn failed to add additional security layers, such as salting the passwords, a technique which randomly appends a string of characters.

Following the attack, LinkedIn confirmed in a blog post the addition of new security layers, including the salting of passwords.

Share this article:

Sign up to our newsletters

More in News

Hackers target video game companies to lift copy protections and develop cheats

A threat group is targeting video game companies in order to lift DRM protections, develop cheats and possibly to steal source code.

Android malware spreads via mail tracking SMS spam

The mobile malware is currently targeting German users, McAfee revealed.

About 2,800 victims of worldwide info-stealing campaign targeting various sectors

About 2,800 victims of worldwide info-stealing campaign targeting ...

Unknown attackers have claimed about 2,800 victims in an ongoing information-stealing campaign identified by Kaspersky Lab as "Crouching Yeti."