[HN Gopher] Patreon laid off their ENTIRE security team
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       Patreon laid off their ENTIRE security team
        
       Author : BlackLotus89
       Score  : 103 points
       Date   : 2022-09-08 21:56 UTC (1 hours ago)
        
 (HTM) web link (twitter.com)
 (TXT) w3m dump (twitter.com)
        
       | matrix_overload wrote:
       | I think, a healthy dose of skepticism is in order. This news
       | traces down to one LinkedIn post [0] from one person claiming
       | that them "and the rest of the team" is no longer with the
       | company and are looking for work.
       | 
       | They have 3 clear motivations to exaggerate the situation:
       | 
       | 1. Disgruntled employee wanting the employer to look dumb.
       | 
       | 2. Oversensationalize the news to attract more attention to their
       | "looking for a new job" message.
       | 
       | 3. Oversell their role in the company in hopes of getting more
       | interviews.
       | 
       | For what it's worth, "me and the rest of the security team" could
       | be one person with a handful on interns doing an experimental
       | project in the security area. Like, trying to achieve 100% formal
       | validation of a massive codebase, on top of existing engineering
       | practices. Such ambitious projects do get axed at the first sign
       | of a downturn, and it would not be a reason for panic.
       | 
       | I would exercise caution and stick to quantifiable facts before
       | concluding that Patreon is run by idiots.
       | 
       | Patreon would, in turn, have a motivation to deny the layoff, so
       | the truth is somewhere in between. A good independent metric
       | would be other verifiable LinkedIn users confirming that they got
       | sacked as well.
       | 
       | [0] https://www.linkedin.com/posts/emetcalfe_opentowork-
       | activity...
        
       | NowhereMan wrote:
       | Maybe I won't have to log in to Patreon every week now.
        
       | nebula8804 wrote:
       | The fact that I might have actually seen this person at DEFCON
       | just a few weeks ago seems so cool to me. Its like my world on
       | HackerNews is colliding with real life(for the first time). I
       | wonder if this is how people feel when they meet celebrities?
       | 
       | Also, that is one cool badge as their pinned post, I didn't see
       | that one this year. I always miss out on the cool badges at
       | DEFCON.
        
       | datalopers wrote:
       | So Patreon will announce a massive user data leak tomorrow?
        
         | tartoran wrote:
         | That's not unheard of, could be just prepping with the security
         | team lay off. But it's mere speculation at this point
        
         | ok_dad wrote:
         | Unless the whole team was complicit and malicious, there's no
         | need to fire them all for something like that. That would just
         | performative and does nothing to fix any issues.
        
       | jiveturkey wrote:
       | well, how big is the ENTIRE security team? LinkedIn only shows up
       | 4 people. Don't know what a typical percentage would be expected
       | to show up there.
        
         | golemotron wrote:
         | I'm scratching my head that someone who does security and
         | privacy as their job puts this out on Twitter. Aside from the
         | messed up ethics, it's not a good look while job hunting.
        
       | altruios wrote:
       | that sounds like a royal fuck up... cleaning house is... unusual
       | right... for an entire security department?
        
         | dogman144 wrote:
         | Security teams hedge risk and respond to realized risk
         | (security incidents).
         | 
         | Unless it is the fuck ups of all fuckups, companies that fire
         | security teams for a security gap that got hacked will never be
         | able to hire a security team again that's competent. They'll
         | get people trying to break into the industry, but not capable
         | vets.
         | 
         | Behind 99% of security incidents is a lack of funding,
         | staffing, or "no we have to deploy to prod soon, sorry." The
         | very large sprawl that Series B -> pre-IPO sec teams have to
         | address is staggering. Pre-IPO is usually the latest point that
         | funding, staffing, support shows up.
        
         | jiggawatts wrote:
         | I've seen this happen once when there was an insider attack
         | from within the IT department involving multiple staff.
         | 
         | Instead of trying to figure out who the bad actors were and who
         | could still be trusted, the directors simply fired everybody in
         | the team.
         | 
         | I was brought in as an outsider on the Friday evening to
         | reverse engineer their passwords and basic network info so that
         | they could continue to operate on Monday morning.
        
           | isatty wrote:
           | I have also seen a large security team gutted because of some
           | royal fuckup. It was at a large-ish startup, but they
           | retained enough people to operate day to day till
           | replacements could be hired.
        
           | Brian_K_White wrote:
           | Funny how the same reasonable logic doesn't ever seem to
           | apply to the people saying it.
           | 
           | Those same directors are part of the same organization and
           | are responsible for the actions of everyone under them. That
           | responsibility is supposedly WHY they get to enjoy those big
           | paychecks.
           | 
           | But somehow "everyone involved has to go" still doesn't
           | include them...
        
             | maerF0x0 wrote:
             | Rules for thee and not for me
        
           | okdood64 wrote:
           | > reverse engineer their passwords
           | 
           | Elaborate?
        
           | nebula8804 wrote:
           | Go on...did you manage to keep operations running on Monday?
           | 
           | Everyone else has all the cool stories meanwhile here I am
           | aspiring to live Homer Simpson's lifestyle. Oh well.
        
             | sleepybrett wrote:
             | I've never worked at a company where the security
             | department was actually key to uptime. Mostly they are
             | responding to design proposals/consulting with engineering
             | teams, responding to scanner alerts, etc.
        
       | noodleman wrote:
       | Normally, I'd first go with "So what did they do wrong?".
       | 
       | But since it's the _security_ team, I 'm gonna go with Patreon is
       | in dire financial straits and this is the tip of the iceberg.
        
         | sleepybrett wrote:
         | how could they not be rolling in cash. their product is not
         | that sophisticated and i assume they take a decent haircut from
         | every subscription. Seems like a money printing machine to me.
        
           | nebula8804 wrote:
           | Furthermore, if Patreon goes then a lot of indie people are
           | royally screwed. So many demonetized Youtubers or people at
           | risk of being booted depend on Patreon.
        
             | jimbob45 wrote:
             | SubscribeStar does basically the same thing, right? I
             | imagine everyone would just move right over, business as
             | usual.
        
               | paranoidrobot wrote:
               | It's not that straightforward.
               | 
               | For the Creator, even if you exclude the things that
               | interact with Patreon to do the benefit-management bits,
               | you have to also do any KYC/Identity verification bits,
               | re-setup account transfers.
               | 
               | Then you need to reach out to all your supporters and
               | convince them to move over. They're going to lose some
               | percentage of those people -- how much is going to depend
               | on the creator and the fanbase. Some people are just
               | going to ignore it, every single one of them though are
               | going to re-evaluate that math in their head as to
               | whether they really want to continue supporting that
               | person.
               | 
               | Patreon also has major brand-awareness. Someone telling
               | you to move over to SubscribeStar, Liberapay, Buy Me a
               | Coffee or whatever might get a "This seems like a scam"
               | type reaction.
        
             | throwaway5959 wrote:
             | I'm not sure if demonetized YouTubers going down is the end
             | of the world.
             | 
             | Edit: found the alt-righters
        
               | nebula8804 wrote:
               | Normally you'd think its just right wingers and yeah a
               | lot of their garbage ends up demonetized but its also
               | people that are pro-Union, anti-establishment (right wing
               | and left wing), people who are anti-empire/anti-war/anti-
               | Israel/Pro-palestine (Abby Martin for example). Craziest
               | example I heard of recently is people who post anti-Tesla
               | videos are getting attacked and demonetized by their
               | fanboys.
        
               | egypturnash wrote:
               | The queer lefty independent webcomics scene leans on
               | Patreon a lot too, I'm one of them.
        
             | tartoran wrote:
             | If there's a need in the market someone will step in and
             | fill the void. Probably it's for the best if they don't get
             | greedy and keep it simple, shave a bit as a fee and that's
             | all.
        
               | nebula8804 wrote:
               | Tell that to Parler and the aftermath of their disastrous
               | data leak. There needs to be more respect for the effort
               | that goes into making well built online services. Turns
               | out its much harder than a lot of people realize.
        
             | shawn-butler wrote:
             | OnlyFans is just waiting to be "legit"
        
           | TillE wrote:
           | I have faith in their ability to screw up a good thing for no
           | reason.
           | 
           | A couple years ago, they tried to change their whole payment
           | system so each subscription was billed individually, racking
           | up more fees for patrons. They kept defending it and
           | _finally_ backed down at the last minute after a ton of their
           | biggest creators yelled at them.
        
           | simlevesque wrote:
           | They serve videos. That can be easily more costly than the
           | cut they get.
        
             | bparsons wrote:
             | Don't they use Vimeo?
        
           | ZephyrBlu wrote:
           | Patreon takes the lowest cut of any platform. Only something
           | like 12% vs most others taking 20-30% or more.
           | 
           | E: see this video https://youtu.be/bGvfYv5nzs0?t=138
        
           | picardo wrote:
           | > Seems like a money printing machine to me.
           | 
           | Only if the creatives are making their money on _their
           | platform_.
           | 
           | Since Patreon's entire business model is based on taking a
           | cut of the revenue artists make on their platform, they don't
           | make money if the artists make money elsewhere. Many
           | creatives use Patreon only for fan outreach, and sell
           | merchandise outside of Patreon.
           | 
           | If Patreon charged a fixed rate for their software, they
           | could make more money, but they would lose the business of
           | small creatives. That's the dilemma.
        
             | dorkwood wrote:
             | More people turning to things like Stable Diffusion instead
             | of commissioning artists likely has an effect too.
        
           | LegitShady wrote:
           | Patreon has raised hundreds of millions (https://www.crunchba
           | se.com/organization/patreon/company_fina... - according to
           | this $414M in 10 rounds) in venture capital.
           | 
           | Meanwhile in January they said they had taken in a total of
           | $3.5 billion in creator lifetime funding. At lets say 8%
           | average cut that means they've made a total of $280M in their
           | whole history, although earlier accounts got grandfathered at
           | the original 5% rate I think. We'll go with 8% to be
           | generous. Even at 12% that means total lifetime income for
           | patreon is $420M, around the same as their VC funding.
           | 
           | Then they have to pay all the processing fees, their own
           | development and operational staff, etc. Then they have to pay
           | back their VC money.
           | 
           | VC funding killed patreon.
        
             | dagi3d wrote:
             | you don't have pay back your vc's you raised from(unless
             | you raised debt). another story is that their investors
             | might have forced them to cut costs and make everything
             | needed to become profitable as soon as possible.
        
             | 6stringmerc wrote:
             | That guy from Pomplamoose taking Patreon to VCs is what
             | killed it.
        
             | sailfast wrote:
             | Good point. I also can't help but notice their CEO
             | monetizes almost entirely on YouTube with scary pockets and
             | other videos.
        
             | robocat wrote:
             | > VC funding killed patreon.
             | 
             | A company is worth it's future cash flows. You are making
             | an argument about the sunken costs which does have some
             | relevance to individual funds.
             | 
             | You don't get 10 rounds of investment without a convincing
             | argument (or believable story) for future profitability at
             | each round (even if some rounds turn out to be duds later).
        
         | maerF0x0 wrote:
         | > But since it's the security team, I'm gonna go with Patreon
         | is in dire financial straits and this is the tip of the
         | iceberg.
         | 
         | a couple additional cases that can cause a security team to be
         | laid off:
         | 
         | 1. Outsourcing or Offshoring
         | 
         | 2. evidence of significant corruption or incompetence within
         | the team requiring a full reset
        
       | midislack wrote:
       | Didn't they also just steal the Flipper money?
        
         | bagels wrote:
         | Do you have any references for this? I've no idea who you're
         | accusing (the employees or Patreon) or what Flipper money is.
        
         | klyrs wrote:
         | That's paypal
         | 
         | https://news.ycombinator.com/item?id=32739950
        
       | vouaobrasil wrote:
       | Sounds rather scary but I would like to hear both sides of the
       | story. I don't like guessing and passing judgment with basically
       | a single sentence describing something that could have more to it
       | than meets the eye.
        
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       (page generated 2022-09-08 23:00 UTC)