Hacker discloses data after demands unmet

By Greg Sandoval
12 October 2001 08:35 AM
Tags: blackmail, hacker, security, customer, company, information
An online gift certificate company said a hacker that blackmailed it for weeks after pilfering its customer information has apparently carried out threats of disclosing the data to its customers.

Webcertificate.com customers reported getting an e-mail message that included their home and e-mail addresses.

"I hate to inform you that your account has been hacked," said the e-mail, viewed by CNET News.com, from someone identified as Zilterio

Webcertificate, a unit of electronic-payment company Ecount, was hacked August 21, a representative said. Shortly afterward, the hacker, who also claimed to have stolen credit card numbers of 350,000 of the company's customers, contacted Philadelphia-based Ecount and tried to extort the company, said Matt Gillin, Ecount's chief executive. The caller demanded US$45,000 in exchange for not disclosing the information.

The company refused to meet the demands, Gillin said.

After notifying the FBI, Ecount informed customers August 28 that the break-in had occurred, and it assured them that their credit card information was safe. Because the company stores credit card information offline, it would be impossible for the hacker to steal it electronically.

What the hacker thought were credit card numbers were really 16-digit serial numbers used to identify gift certificates. Ecount has canceled those codes. "There is no financial liability to the company or our customers," Gillin said.

The FBI could not be reached for comment.

Hackers continue to plague the Internet even as technology companies have poured millions of dollars into developing security technology. But the costs of fortifying a Web site with the latest security technology can be enormous, and often hackers prove to be more than a match for the electronic barricades.

Companies such as Amazon.com-owned book service Bibliofind.com, Creditcards.com and Egghead.com, which recently filed for bankruptcy protection, have seen their sites broken into and customer information--in some cases, credit card information--swiped by thieves.

Executives of Ecount said they anticipated the hacker would e-mail customers whose information was stolen. Last week, the company tried to pre-empt the hacker when it warned customers to expect a message from the hacker and informed them why the company would not agree to the hacker's demands.

In the e-mail to Webcertificate customers from Zilterio, the author declares that the security breach was a result of "weak security," an apparent attempt to embarrass the company.

Ecount said the attempt to undermine the company's relationship with its customers failed; most customers support the company in its fighting against Internet thieves. But some damage may have been done. One customer told News.com that she would no longer use Webcertificate.

"This disturbs me, that this guy has all of my personal information," said Nancy Parker, a frequent Webcertificate customer over the past two years who was shocked to see her personal information in the e-mail. "What's from keeping it from happening again?"

Gillin said that immediately after the attacks, the company began bolstering the site's security.

"We're doing all we can to make sure that this never happens again," he said.

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Talkback 4 comments

    STOP misusing the word "H ...Anonymous -- 12/10/01

    STOP misusing the word "Hacker"!

    A hacker is a computer enthusiast who subscribes in some degree to the hacker ethic (see The New Hacker's Dictoinary, ISBN 0-262-68092-0) that sharing can be a powerful positive good. Hackers are often co-operative, polite people (providing you are polite to them too, of course!) and in general are motivated by the quest for knowledge, not lust for money.

    The jerks described in the article could better be described as 'crackers' or, more accurately: criminals, extortionists, blackmailers. They were not harmlessly seeking knowledge, but instead appear to have shamefully misused their abilities by victimising a company for their own selfish personal financial gain.

    The media should take professional pride in accurate reporting, and this includes getting terminology precisely correct. I'm sure ZDnet doesn't want to convey the impression they are sloppy or slapdash... hmmm?

    Hmmm and the definition of ped ...Anonymous -- 12/10/01

    Hmmm and the definition of pedantic is?

    hack·er1 (hkr)
    n. Informal
    1. One who is proficient at using or programming a computer; a computer buff.
    2. One who uses programming skills to gain illegal access to a computer network or file.
    3. One who enthusiastically pursues a game or sport: a weekend tennis hacker.

    I think what you should understand is that popular culture refers to someone who commits a crime with the aid of a computer as a hacker.

    I would have thought the term cracker was instead a definition of someone who modifed or tampered with program code without authorization, perhaps whilst in the act of "hacking".

    You might find that over the course of history, definitions adapt to what people understand them to be, not necessarily what they originaly meant. Or perhaps people just understand that it is easier for you to go with what the mainstream is instead of being onstentatious and showing everyone how good you think you are.

    Damon, it can be proposed that ...Anonymous -- 12/10/01

    Damon, it can be proposed that if misconceptions were not popularised by a slapdash media, they would be less likely to become "popular culture" at all..

    I think you should understand that the word 'hacker' among computer buffs tends to be used as a mark of admiration about someone's abilities, and to have the term hijacked by sloppy journalists and turned into a popular pejorative is a sad thing.

    For example the remark, "Bill's quite a hacker", meaning "Wow, the bloke's an absolute guru", now has to be said with consideration of the audience within earshot: a computer buff would be respectful, but a victim of "popular journalism" would probably form the unfair impression that Bill is some sort of criminal.

    People often act with fear to what they do not understand, and fear of the Hacker by those with few computing skills is, unfortunately, a great angle when you're a hack journalist rehashing a story, because you want your article to resonate with the largest group of readers...

    The term 'cracker', which was coined by hackery types about 15 years ago, indicates someone who breaks into systems or programs with underhanded intent. You may not see "intent" as a sufficient reason to use a different word, Damon, but should you ever decide to study law, you will no doubt discover the importance of this concept.

    On the subject of pedantry, it is good to see you indulge in it Damon, I enjoy reading dictionary entries myself, too. As you obviously have a dictionary handy, I'd suggest you check the spelling of "onstentatious".. couldn't find this word in mine! -maybe it's not mainstream enough, yet. I did notice "originaly", too, but it's obviously a typo. Not to worry. ;-)

    To the other posters: Surely y ...Anonymous -- 10/09/04

    To the other posters: Surely you are used to the fact that the word "hackers" is used in different ways by different people?

    1. By our peers, who actually know something about computers, and some reporters: These people write the articles that, as a general rule, are to be taken seriously and can be considered factual, respectable and reliable. (check your sources students)

    2. Other reporters that have yet to master Basic Computing Definitions 101, let alone serious computer security matters: Such articles are to be taken with more than a grain of salt as their content will surely involve much more sensationalism and hype then accurate factual content. They seek to generate ratings and are targeting to the people who are not computer people.

    I don't know about what other people think, but it is something that I keep in mind when I am reading for myself.
    On the other hand, when I want something to argue a point in an assignment for university, then something coming from a lousy reporter on a respectable site is gold! Using such content (pull some old articles) I can prove that Kevin Mitnick was planning to start a nuclear war from a prison payphone.

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