[HN Gopher] FTC takes action against CafePress for data breach c...
       ___________________________________________________________________
        
       FTC takes action against CafePress for data breach cover up
        
       Author : reidrac
       Score  : 94 points
       Date   : 2022-06-27 17:41 UTC (5 hours ago)
        
 (HTM) web link (www.ftc.gov)
 (TXT) w3m dump (www.ftc.gov)
        
       | olliej wrote:
       | It sounds like the concealing of it is (rightfully) a bigger part
       | of things.
        
         | encryptluks2 wrote:
         | Which is okay if you're an Xfinity or other entity that
         | frequently lobbies congress.
        
           | olliej wrote:
           | Yeah, except that seems to be true of /any/ crime, in any
           | industry.
        
             | dontbenebby wrote:
             | The BCP is kind of a joke, they do these enforcements
             | usually when a practice is widespread, it's like when they
             | pull over one car on the highway and the rest slow down.
             | 
             | The GOP commissioners do not believe in the mission, and
             | obstruct it, so you have the same issues with enforcement
             | you saw play out on the SC recently -- GOP presidents stack
             | the org with people who aim to destroy it.
             | 
             | Then to add insult to injury, they require you to have a JD
             | (which entails not be able to operate a computer
             | apparently, or when you do, needing to have 1 pagers on
             | encryption from the 90s rewritten every two weeks to two
             | years), and when they do hire anything remotely related to
             | the liberal arts, they label them as "economists" and don't
             | allow anyone who actually believes in sound economics in --
             | only Austrian bull crap, the usual Keyes neoliberlism, or,
             | at best neoliberalish "behavioral economists" who
             | rediscover concepts I learned in my cognitive psyc class in
             | undergrad that date back decades.
             | 
             | (Dark patterns being a classic example -- we're gonna
             | discover the lies that were explained in Consumer Reports
             | for Kids in the 1990s at an exploratory workshop in 2020s?
             | Stuff like that is why more and more people are leaving
             | America permanently.)
        
       | kevin_thibedeau wrote:
       | > inadequately encrypted passwords,
       | 
       | Assuming this means unsalted hashes. Since when has the FTC been
       | going after this?
        
         | blacksmith_tb wrote:
         | That whole sentence is even more interesting: "the FTC alleges
         | that CafePress failed to implement reasonable security measures
         | to protect sensitive information stored on its network,
         | including plain text Social Security numbers, inadequately
         | encrypted passwords, and answers to password reset questions."
         | Why would CafePress have anyone's SSN? I suppose potentially a
         | merchant selling on it might need to have provided banking
         | details, but that still doesn't seem like it should include a
         | SSN?
        
           | kayodelycaon wrote:
           | Sole proprietors use their SSN for tax purposes. May also
           | apply to single-member LLCs.
        
             | lsaferite wrote:
             | Can't Sole Proprietors obtain an EIN as well though? No way
             | I'm using my SSN for stuff like that. I always used an LLC
             | with an EIN.
        
               | xeromal wrote:
               | They can. I assume DBAs (Doing business as) folks are the
               | ones that use their SSN. Just real small-time shops.
        
               | mcculley wrote:
               | Many sole proprietors execute under their SSN. Most will
               | not bother to acquire an EIN.
        
           | mcculley wrote:
           | An individual can sell custom/branded merchandise on
           | CafePress. If CafePress is sending more than $600 per year to
           | an individual, they have to issue a 1099, which has to have a
           | TIN, which is going to be an SSN for most individuals.
        
           | olliej wrote:
           | Income reporting? If you're a non-business merchant? Or if
           | you're a business the businesses tax is?
           | 
           | This is me stabbing in the dark, no actual knowledge or
           | anything :)
        
         | nerdponx wrote:
         | For all the apparent inaction and broken promises of the Biden
         | administration, it's been very refreshing to see "technical"
         | government agencies returning to basic competency, and in some
         | cases apparently actively bucking long trends of regulatory
         | capture. The bureaucrats seem surprisingly progressive this
         | cycle (once again highlighting the fragility of a system that
         | functions in spite of, rather than because of, the primary
         | lawmaking body). It's a shame that they will probably be voted
         | out next go around, possibly in favor of the prior Twitter User
         | In Chief.
        
         | pavon wrote:
         | I was curious about what legal theory they were using to
         | enforce this. It appears that 5/7 of the counts are just false
         | or misleading statements - CafePress claimed to have good
         | security but didn't. Another is just tangentially related to
         | security. The interesting one is Count III:
         | 
         | > As described in Paragraph 11, Respondents' failure to employ
         | reasonable data security measures to protect Personal
         | Information caused or is likely to cause substantial injury to
         | consumers that is not outweighed by countervailing benefits to
         | consumers or competition and is not reasonably avoidable by
         | consumers themselves. This practice is an unfair act or
         | practice. ...
         | 
         | > in violation of Section 5(a) of the Federal Trade Commission
         | Act.
         | 
         | If I'm reading this correctly, it is saying that the FTC
         | interprets poor security of user's data to be in violation the
         | FTC act even outside of any promises given to the customer.
         | That seems like a big stretch IMO.
        
           | bombcar wrote:
           | It's the legal theory of "agree to these things or we're
           | going to publicly try to nail your assets to the wall" - even
           | if they actually can't do it, do you want to pay the costs of
           | fighting it, or give the FTC their little PR moment.
        
         | dontbenebby wrote:
         | I saw one darknet site where they didn't keep hashes, so they
         | could go off and use all the various algos (sha, md5 etc) then
         | see where else those users were members (by looking for
         | password if they were dumb enough), I wonder how often that
         | happens in the corporate world but absent a whistleblower or a
         | helpful hacker no one would find out.
         | 
         | (I'm not clear if they were being run by the police when I
         | showed up, or if that was an extortion technique, but it's been
         | over two years since that adventure, so the CFAA has expired
         | and if someone takes issue I tried to take down a den of
         | hurtcore creeps because one of them obstructed my job search
         | before the portmanteau had been popularized, form a line to my
         | left so you don't interfere with the baristas taking orders, as
         | I operate in the clear and I will not abide absolute scumbags
         | who abuse their access.)
        
           | inetknght wrote:
           | > _they didn 't keep hashes, so they could go off and use all
           | the various algos (sha, md5 etc) then see where else those
           | users were members (by looking for password if they were dumb
           | enough), I wonder how often that happens in the corporate
           | world_
           | 
           | https://en.wikipedia.org/wiki/Credential_stuffing
           | 
           | Indeed, it's a major problem.
        
             | dontbenebby wrote:
             | Oh yeah I know the re-use is common, I more meant the
             | technique of purposefully not hashing or disabling hashing
             | to compare hashes across services and connect users.
        
         | tptacek wrote:
         | I'm a little nerd-sniped by the callout over using SHA-1; SHA-1
         | is broken in a way that has nothing to do with password storage
         | security (they're not using a password KDF at all, so the
         | thrust of the complaint isn't wrong, and no sane person would
         | use SHA-1 to build a new password KDF in 2019, but still!)
        
         | bityard wrote:
         | They're not going after them for that. They're going after them
         | for that plus an incredibly long list of other basic security
         | failures, failing to notify customers that their personal data
         | was now in the wild, and other negligence
        
       | 4oh9do wrote:
       | Bullshit like this will continue happening en masse until there
       | are mandatory prison sentences for C-suite executives for
       | negligence and malice like this.
        
         | tbihl wrote:
         | As much as we love to imprison people in the US... Maybe just
         | make the expected value of cover up massively negative with
         | fines as significant multiples of actual damage?
        
           | dontbenebby wrote:
           | No, jail them, even if just overnight. It fixed Iceland's
           | issues.
           | 
           | https://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_fi.
           | ..
           | 
           | Prison is for serious crimes, like murder, or financial
           | losses so large they are akin to one.
           | 
           | A human life is worth about 10 million:
           | 
           | https://en.wikipedia.org/wiki/Value_of_life#United_States
           | 
           | If someone makes a big deal out of never killing, and they do
           | multiples of damage to that, some of which causes others to
           | die of depression... then walk them out of their offices in
           | handcuffs, one by one, until they're "nudged" to change their
           | behavior.
           | 
           | I feel just as precarious as I did in 2008. (Moreso since I'm
           | older, and don't have the clean slate young people do but
           | don't have the savings others have on this site despite
           | always trying to make the least wrong decisions I could...
           | but if others don't opt in to giving me income, I can't
           | invest it wisely, full stop.)
        
           | lesuorac wrote:
           | I dunno, we seem to issue fines a lot nowadays and the
           | behavior doesn't change.
           | 
           | What even would the the expected value for a fine in this
           | situation? It seems overly complex to calculate as I don't
           | think even the FTC tried to put a value of the damages from
           | the sale of the person information.
        
             | adrr wrote:
             | Fines or threat of jail time is just trying treating the
             | symptoms. Bigger issue is that companies use SSN as a way
             | to authenticate a user. Government should mandate only
             | allowing SSN for tax identification purposes. Passwords
             | need to go away and with webauth, we are almost there. The
             | average person is re-using the same password across sites
             | so it's pointless protection.
             | 
             | An e-commerce store hack shouldn't give hackers the data
             | needed to access customers financial accounts.
        
               | lesuorac wrote:
               | And when a company doesn't comply?
               | 
               | A law without a penalty isn't a law you need to follow.
        
               | 4oh9do wrote:
               | > Government should mandate only allowing SSN for tax
               | identification purposes.
               | 
               | CafePress was presumably collecting SSNs precisely for
               | tax identification purposes.
        
               | adrr wrote:
               | It's not them who are the problem. Its financial
               | institutions and other services that use SSN as way to
               | verify a person. You should not be able to setup a cell
               | phone plan by providing a name and a SSN. And credit
               | reporting should not be tied to a SSN. It should just be
               | used to submit tax information to the government and have
               | no value beyond that.
        
             | deathanatos wrote:
             | > _I dunno, we seem to issue fines a lot nowadays and the
             | behavior doesn 't change._
             | 
             | We issue fines, yes. We do not issue fines to an amount
             | that would incentivize behavior change. Most fines from
             | agencies like this, when I see them, tend to be in the <$10
             | range, when scaled to how "impactful" the fine would be
             | against an average person's income. My father would call a
             | fine that's less than $10 a "toll".
             | 
             | In this particular case, the fined entity is too small for
             | me to know exactly, as I can't find their financials. But
             | the amount doesn't smell large.
             | 
             | In some instances, I've seen agencies level $0 fines
             | against corporations. Literally, all the agency demanded
             | was "stop doing the bad thing, m'kay?"
        
               | dontbenebby wrote:
               | >We issue fines, yes. We do not issue fines to an amount
               | that would incentivize behavior change.
               | 
               | Who is we? The US?
               | 
               | I see many euros on HN tutting about lax regulation, but
               | no one in the EU seem willing to actually enfore the GDPR
               | and levy a corporate death penalty if their brothers
               | across the pond won't do the needful.
               | 
               | (I'm eligible for an Italian passport Jus sanguinis,
               | though I had intended not to look into it until late in
               | life -- maybe I should abandon my American one, and
               | immediately lobby for the above to my new elected
               | representatives, since everyone I've met from the world
               | of spooks seems to obstruct me out of fear I'll expose
               | their illegal behavior rather than do their damn job well
               | enough I wouldn't notice how they spend their free time.)
        
           | 4oh9do wrote:
           | It's all Monopoly money to corporations. If there is no fear
           | of an actual corporal punishment, then there is no personal
           | skin in the game, so to speak. An executive who causes a
           | corporation to be fined may worry about losing their job, but
           | they'll be much more worried if the risk is going to prison.
           | 
           | And it's not that we love to imprison people in the US, it's
           | that we love to imprison the wrong people.
        
             | tbihl wrote:
             | >It's all Monopoly money to corporations.
             | 
             | Surely you don't mean by this that they don't care about
             | money. Isn't the cynical take normally that corporations
             | are amoral money maximizing juggernauts? Why wouldn't they
             | respond to adequate threats?
        
               | themitigating wrote:
               | It's not that they don't care about money it's that they
               | are less affected by loss.
               | 
               | Once someone earns about 10 million they can live for the
               | rest of their life in a reasonable way without working
               | again. So when you are an executive who has assets of 50
               | to 70 million and your stock, which was worth 10 mil is
               | now worth 7 mil you aren't hurt that bad.
               | 
               | The company can they raise prices, cut quality, and fire
               | people to reduce costs to make up for the fine. The stock
               | might eventually even go higher than it was before.
        
               | 4oh9do wrote:
               | What I mean is that executives value their personal
               | livelihoods above money, though the two are often
               | correlated. Therefore the punishment needs to strike at
               | the core, their personal as opposed to financial freedom.
               | "Big" fines for corporations have been around forever, I
               | don't see them changing anything.
        
             | dontbenebby wrote:
             | >It's all Monopoly money to corporations. If there is no
             | fear of an actual corporal punishment
             | 
             | The Swift Ban was as close to an economic death penalty as
             | you can give a bank, we should do it more often to
             | corporations, public or private, that act the fool
             | 
             | (Looking at you, China, with your manipulation of both CNH
             | and CNY)
             | 
             | https://en.wikipedia.org/wiki/SWIFT_ban_against_Russian_ban
             | k...
        
       | tptacek wrote:
       | From the consent agreement, in addition to a bunch of fuzzier
       | stuff about standing up a security program, the FTC has demanded:
       | 1. Technical measures to monitor all of Respondent's networks and
       | all systems and         assets within those networks to identify
       | data security events, including unauthorized         attempts to
       | exfiltrate Personal Information from those networks;
       | 2. Policies and procedures to ensure that all code for web
       | applications is reviewed for         the existence of common
       | vulnerabilities;                3. Policies and procedures to
       | minimize data collection, storage, and retention, including
       | data deletion or retention policies and procedures;
       | 4. Encryption of all Social Security numbers on Respondent's
       | computer networks;                5. Data access controls for all
       | databases storing Personal Information, including by, at a
       | minimum, (a) restricting inbound connections to approved IP
       | addresses, (b) requiring         authentication to access them,
       | and (c) limiting employee access to what is needed to
       | perform that employee's job function;                6. Policies
       | and procedures to ensure that all devices on Respondent's network
       | with         access to Personal Information are securely
       | installed and inventoried at least once         every twelve (12)
       | months, including policies and procedures to timely remediate
       | critical and high-risk security vulnerabilities and apply up-to-
       | date security patches;                7. Replacing authentication
       | measures based on the use of security questions and answers
       | to access accounts with multi-factor authentication methods that
       | use a secure         authentication protocol, such as
       | cryptographic software or devices, mobile         authenticator
       | applications, or allowing the use of security keys; and
       | 8. Training of all of Respondent's employees, at least once every
       | twelve (12) months,         on how to safeguard Personal
       | Information;
       | 
       | #7 jumps out at me. The problem CafePress has is that they used
       | security questions rather than the industry-standard practice of
       | just sending password-reset emails, which meant the answers to
       | those security questions were password-equivalent, and, of
       | course, stolen in the SQLI attacks. But the simpler fix here is
       | just to require password reset emails, not to mandate multi-
       | factor authentication. Though I wonder if they'll just claim
       | email resets are a second factor.
        
         | bombcar wrote:
         | #1 sounds like a boondoggle for security companies, selling
         | software that doesn't actually _do_ much; but perhaps I 'm out
         | of the market too long to know what's the current standard.
        
         | 4oh9do wrote:
         | > But the simpler fix here is just to require password reset
         | emails, not to mandate multi-factor authentication.
         | 
         | Password resets lead to iterative passwords, which lead to
         | password reuse, which lead to email compromise, which leads to
         | it being pointless to use email as some ersatz second factor.
         | 
         | If we want to move towards a world where phishing attacks and
         | password breaches are obsolete, then we need to press full-
         | throttle to mandating hardware security keys for all accounts.
        
           | tptacek wrote:
           | It is very much the FTC's place to require companies to live
           | up to the commitments they've made to customers, and
           | probably, more broadly, to make sure they live up to the
           | implied commitments of universal industry best practices. It
           | is less clear that FTC has the authority to turn random
           | companies into test cases for the elimination of phishing
           | attacks.
           | 
           | The practices CafePress had prior to its breach were clearly
           | inadequate, and justifiably actionable. They authenticated
           | users with password-equivalent "security questions", which
           | they (of course) stored in clear text. Storing cleartext
           | password reset secrets contravenes universal industry best
           | practices, and, really, so does the use of "security
           | questions" at all --- though many banks still do.
           | 
           | But requiring 2FA tokens is not a universal practice.
           | Moreover, deployed over a whole userbase, it doesn't really
           | address the concerns that lead to or were revealed by this
           | breach. Managing 2FA for non-technical end users --- that's
           | the kind CafePress serves --- is extraordinarily difficult.
           | People lose tokens, 2FA codes are phishable, account recovery
           | remains the most difficult problem in computer security, and
           | so on.
           | 
           | So yes, it is weird to me to see the FTC suggest that the
           | appropriate solution to a broken authentication system with
           | security question is "make people use 2FA tokens". The
           | universal best practice solution to the specific problem the
           | security tokens solved is "password reset emails that prove
           | custody of a trusted email account". The demand from the FTC
           | exceeds that best practice. That's interesting, and so I
           | called it out.
           | 
           | We don't know each other, so it probably bears saying that I
           | am foursquare supportive of 2FA. I'm supportive of a lot of
           | things the FTC would no doubt love to force companies to do
           | (penetration testing in particular!)
        
             | 4oh9do wrote:
             | > But requiring 2FA tokens is not a universal practice.
             | 
             | It is not universal practice, but it is industry-standard,
             | so I don't particularly understand why it is surprising
             | that the FTC is recommending that CafePress adhere to
             | industry standards.
        
               | tptacek wrote:
               | 2FA is not in fact the industry standard process for
               | account recovery (it's the industry standard problem that
               | causes us to have to spend time on account recovery!),
               | and account recovery is the problem this part of the
               | consent agreement addresses.
        
               | 4oh9do wrote:
               | As per NIST 800-63B:
               | 
               | > To maintain the integrity of the authentication
               | factors, it is essential that it not be possible to
               | leverage an authentication involving one factor to obtain
               | an authenticator of a different factor. For example, a
               | memorized secret must not be usable to obtain a new list
               | of look-up secrets.
               | 
               | And further:
               | 
               | > Methods that do not prove possession of a specific
               | device, such as voice-over-IP (VOIP) or email, SHALL NOT
               | be used for out-of-band authentication.
        
               | tptacek wrote:
               | That's the NIST standard definition for out-of-band
               | authenticators. FTC didn't demand out-of-band
               | authenticators, nor is anyone obligated to comply with
               | NIST.
        
               | bombcar wrote:
               | And the account/2FA reset procedure is always the weak
               | point - most of my accounts with 2FA enabled let me reset
               | it with access to email or SMS.
               | 
               | (Which is good for some of them, as they're notoriously
               | flaky).
        
               | tptacek wrote:
               | Yes. For obvious reasons, people are more prone to lose
               | 2FA authenticators (be they code generators or hardware
               | keys) than passwords. Both passwords and 2FA mechanisms
               | are customers of account recovery, which is the process
               | that kicks in when you can't log in. Security questions
               | are a particularly bad account recovery system. Reset
               | emails are somewhat better.
               | 
               | Again, 2FA isn't an account recovery process at all; it's
               | a reason you need account recovery.
               | 
               | To get a general sense of where we're at as an industry
               | with this, look at the process for what happens when you
               | lose an AWS 2FA secret:
               | 
               | https://docs.aws.amazon.com/IAM/latest/UserGuide/id_crede
               | nti...
        
               | 4oh9do wrote:
               | > Again, 2FA isn't an account recovery process at all;
               | it's a reason you need account recovery.
               | 
               | Your reading of the FTC text seems to be that you think
               | the FTC has conflated account recovery with 2FA, but I
               | don't think that's the case. Instead, my read is that
               | they're suggesting that password breaches can be rendered
               | moot points by requiring 2FA for accounts, so that the
               | compromise of a password would not require an account
               | reset in the first place.
        
               | tptacek wrote:
               | I'm reading the plain language of the agreement, which
               | requires the replacement _of security questions and
               | answers_ , and is not in fact a manifesto about the
               | insecurity of passwords writ large.
               | 
               | But technical language aside: a requirement that
               | CafePress fully adopt 2FA also doesn't make sense,
               | because its users will not fully adopt 2FA. The users
               | that can't 2FA are the interesting case here, and the
               | thing I'm calling out.
        
           | ketralnis wrote:
           | I think you think they mean password _expiration_ , not
           | password resets. I don't see how the existence of a "I forgot
           | my password" (password reset) flow leads to reused passwords,
           | though automatically expiring passwords certainly do
        
       | arlattimore wrote:
       | What they are requiring might be interesting when compared to the
       | Whitehouse Zero Trust Architecture [1] that was announced last
       | year.
       | 
       | [1] https://www.whitehouse.gov/briefing-room/presidential-
       | action...
        
       ___________________________________________________________________
       (page generated 2022-06-27 23:01 UTC)