1k Data Breaches Later, the Disclosure Lag Is Worse

Today, I loaded the 1,000th data breach into Have I Been Pwned. Reflecting on that milestone number, I pondered how to mark the occasion in writing, and what immediately came to mind was a very simple question: why is it still needed? Especially considering the emergence of privacy regulations such as GDPR and CCPA in the 12 and a half years since I started HIBP, what possible purpose does it still serve? The title kinda gives the answer away, and the big number we hit today coincided with another pattern that makes everything worse: increasingly long lag times for disclosure.

This is all going to be anecdotal, and as far as I know, there are no hard numbers for me to cite, but the evidence is everywhere. Here's what I mean:

New breach: Cruise operator Carnival was targeted in a ShinyHunters “pay or leak” attack last week. 8.7M records with 7.5M email addresses and loyalty program data were published yesterday. 85% were already in @haveibeenpwned.

That was the 24th of April, five days after news of the incident had broken. Given ShinyHunters' MO, Carnival would have known about the breach many days before they ratcheted up extortion pressure by announcing the impending leak on their website. The subsequent leak on the 24th was very public: an announcement was posted to the group's dark-web site, the data itself was published to their clear-web site, and industry commentary followed.

Per that last post, the data was then reposted to all sorts of other places: hacking forums, Telegram channels, and who knows how many other, more private locations. The point is that it spread quickly, extensively, and, without any shadow of a doubt, Carnival were aware of this. They then told people about it on the 27th... of May. According to their press release that same day, this was 43 days after learning about the incident. For more than 6 weeks, data breach victims whose names, dates of birth, email addresses, loyalty program details and, of course, their association with Carnival leaked to the public en masse had absolutely no idea of their exposure. And if they asked Carnival about it? Well, as recently as four days ago, we heard “I’m in the breach per HIBP, but Carnival is telling me there’s no breach!”

So, why the delay? Last week's press coverage may give some insight: "thorough and time-consuming analysis of the impacted data".

Often, the reason I hear for disclosure lag is "we needed to fully assess the scope of exposed data before notifying people". The issue I have with this position is that it implies that even an early heads-up can't happen until there's a very comprehensive understanding of the impact. There are many things that take time to establish after a data breach: the jurisdiction each individual sits in, the precise data that was exposed about them and additional information that may be buried in terabytes of exfiltrated data in all sorts of different formats. But pulling out email addresses and sending early notification is very easy - I've literally done it a thousand times now.

This isn't just a Carnival issue; in fact, it was off the back of this next one only a few days later that I was prompted to write this post: Zara was named as a ShinyHunters victim last month, after which data containing 197k unique email addresses was published. Impacted data included customer support records, product SKUs and order IDs. 60% were already in @haveibeenpwned. There was a 45 days lag. Even worse than Carnival. And like Carnival, very broadly distributed and easily accessible by the masses.

I have a working theory that the disclosure lag is worsening in part due to the proliferation of class actions immediately following a breach. Three of the first four search results for recent breaches are all for class actions related to the breach. I've been raising concerns about the adverse impact of class actions for many years now, and it's worse than I've ever seen. By a big margin, too.

It's not just me observing how the behaviour of these orgs appears to be influenced by how lawyers will respond, either. Have a read of this post from Rob Joyce after he learned about his exposure in the ZenBusiness breach via HIBP: "That is not a customer-protection posture. That is a litigation posture."

This isn't about prioritising the customer, it's about protecting the organisation. I don't think most people understand that organisational accountability really lies with their shareholders, first and foremost. All the pleasantries around "customers are our number one priority" and "we take security seriously" are all secondary to shareholder happiness, and minimising the chances of getting their arses sued into oblivion is a big part of that.

Rob's quoted comment above came immediately after the response he received from ZenBusiness after asking them about the incident: "If we determine that an incident resulted in the exposure of your protected PII, we will provide notice as legally required."

Which brings me to the next problem as it relates to disclosure lag: it may be infinite. By which I mean you may never be told. Ever. GDPR allows it. CCPA allows it. Whatever your local privacy regulation acronym is also allows it. A couple of years ago, I wrote about the data breach disclosure conundrum, where I explained how privacy regs have very specific carve-outs around the circumstances under which data breach victims must be notified. For example, in the UK: "If the breach is likely to result in a high risk of adversely affecting individuals’ rights and freedoms, you must also inform those individuals without undue delay." Under the Notifiable Data Breaches scheme in Australia: "tell you if a data breach is likely to cause you serious harm".

You see the loophole, right? As far as I know, ZenBusiness still hasn't contacted any individual victims. And like Carnival and Zara, their data is all over the place. Same with Charter, which was in the press last week, where they were quoted as saying: "No sensitive personal information (PII) or customer proprietary network information (CPNI) data was exfiltrated by the threat actor as a result of recent activity." That sentence reads like legal posturing to me. It's technically correct, of course: there are very clear definitions for sensitive PII, for example, under California's CCPA: a specific subset of personal information that includes certain government identifiers, financial accounts, precise geolocation, genetic data, or union membership.