Case Study 5

Case Study 5.
2 Solutions
1. The hackers were interested in stealing data so that they can get information about
people. Quickly steal their passwords to log into their online bank accounts, corporate
accounts to steal and transfer funds from their accounts. Even though LinkedIn did not
store financial information, the “data” it had, gave the hackers access to usernames and
passwords that in turn gave the hackers access to corporate accounts and business
database, online banking, so it allowed them to steal more data or transfer funds.
LinkedIn was using an outdated encryption method instead of up to-date industry-
standard encryption and as a result, members’ passwords were really only camouflaged
and crack able profit motivated hackers were interested in LinkedIn stored data because it
was collecting vast amount of profit from data, the company has some cash from its
initial public offering (IPO). Also LinkedIn does not collects the MasterCard or monetary
information of its own members because hackers have an interest in stealing the LinkedIn
information to urge access to the credentials of members operating in LinkedIn and also
the hackers are way more curious about stealing valuable business networks and
information bases, revenue, profits, competitive edge, internet servers and its internet
applications.
2. There are several effects to LinkedIn popularity and credibility, there is a giant loss to
LinkedIn revenue source, regulators imposing immense fines for violating privacy laws
and rules and immense revenue loss in clean up the data and upgrading it. The lax
approach to security and the failure to identify the breach would have seriously impacted
the credibility of LinkedIn and deterred potential users from joining, meaning lower than
expected advertising revenues. The breach also resulted in millions of dollars in costs
associated with cleaning the mess and investment in IT infrastructure. So the breach was
not only a PR nightmare, it would have had serious financial implications as well. From a
huge amount of data that had taken a negligent approach to protecting it for a company
that collects and makes profits. “LinkedIn had waited 2 days before their passwords had
been stolen”. It is the concern of the senior management for data security. LinkedIn’s
failed to detect its data breach. Therefore, it affects the company’s operations, reputations
and customer trust. At the end it affects its revenue, profits and competitive advantage.
3. Because it simply shows that LinkedIn was using an out dated data encryption method,
therefore, they could not discover the data breach but the IT security experts were able to
find out about this breach before them. LinkedIn had a very negligent approach to data
security. “LinkedIn was negligent the data was their main asset and their failure to protect
it did not make business sense". In the company field, IT security take over the authority
for providing cyber security for the information, once LinkedIn intimate with hacking
and information breaches, almost 6.5 million user passwords are leaked and lead to many
monetary damages and breaking of privacy loss the whole information is right down to be
appeared in Russian web site. This was initial noticed by IT security before LinkedIn
came to grasp concerning it. This can be as a result of IT securities forever keeping
attention in focus the information breaches and evolving technologies.
4. LinkedIn could not discover its own data breach as they were using out-dated encryption
method. Members were surprised when they were notified late that their passwords were
stolen. It simple shows that LinkedIn had taken negligent approach to protect its
member’s data. Also, LinkedIn lax approach was a giant surprise to customers also
because it security specialists as a result of, there is negligence in protective such
extremely confidential information and also a company overall assortment and profits
from immense amounts of information is not secured. It failed to protect its most valuable
asset, “data” and it was a high-tech company with a brand to protect and it had a lot of
income to lose.
5. LinkedIn is that platform which is used by businessmen and some good personalities
which may have some information about their businesses. Various connections and
private chats might be going on over the platform with others regarding the various
meetings and other stuff. The users whose data have been lost might suffer a huge loss in
their businesses as there can be chats or personal information which can be used illegally
to apply for different stuffs. Also the overall image of the business will also go down
with those unwanted activities. The actual and potential business risks and damages from
LinkedIn data breach was the clean-up cost, upgrade costs, damages to active customers,
potential risk can include legal risk.
Additionally (The actual and potential business risks and damages from LinkedIn data breach)
-Takeover of individuals' different records by programmers, fraudsters, and different
lawbreakers. Programmers realize that individuals reuse passwords; when their LinkedIn
accounts are connected to Facebook and Twitter, immeasurably an excess of data might be
uncovered. They quickly steal their passwords to log into their online bank accounts, corporate
accounts to steal and transfer funds from their accounts.
-Harm to LinkedIn's greatest income source—its promoting business. LinkedIn's monetary
achievement is attached to its promoting incomes, which depend on the number of dynamic
individuals and participation development.
-Controllers force unforgiving punishments for violating security laws and not taking sensible
consideration to safeguard against data breaches.
- LinkedIn spent in millions in clean-up cost and in updates.
6. Yes, LinkedIn was negligent in protecting its member’s data. This is because they were using
out dated encryption method. If only LinkedIn would have implemented improved password
storage encryption, hired private security and forensics experts at first place than they could have
prevented from this security breaches. They kept profits as their first priority but fail to use an
update security in protecting their data. Also, it was failure to protect client data entrusted to the
company because of their lax approach to security not only violated trust, it had cost the
company and clients millions of dollars.

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