Epsilon

Arrests in ESP data breach

The FBI announced today arrests of three people in the ESP data breaches from the compromises of various ESPs a few years ago.
Krebs on Security: Feds Indict Three in 2011 Epsilon Hack
Department of Justice: Three Defendants Charged with One of the Largest Reported Data Breaches in U.S. History
After stealing over a billion addresses from 8 ESPs, the lists were monetized through affiliate marketing. The owner of the affiliate program was one of the people arrested.
More on Monday.

Are you ready for the next attack?

ESPs are under attack and being tested. But I’m not sure much progress in handling and responding to the attacks has been made since the Return Path warning or the Epsilon compromise.
Last week a number of email marketers became aware that attacks against ESPs and senders were ongoing. The shock and surprise many people exhibited prompted my Spear Phishing post on Friday.
The first round of phishing went out on Wednesday, by Friday they were coming from a different ESP. Whether this was a compromised ESP customer or employee it doesn’t matter. ESPs should have reaction plans in place to deal with these threats.
It’s been months since the first attacks. This is more than enough time to have implemented some response to reports of attacks. Yet, many people I talked to last week had no idea what they should or could be doing to protect themselves and their customers.
Last time the attacks were publicly discussed I was frustrated with many of the “how to respond” posts because few of them seemed to address the real issue. People seemed to be pushing agendas that had nothing to do with actually fixing the security holes. There were lots of recommendations to sign all mail with DKIM, implement 2 factor authentication, deploy validation certificates on web properties, or adhere to sender’s best practices.
None of those recommendations actually addressed the gaping security hole: Humans.

First spam to Epsilon leaked address

This morning I received the first two spams to the address of mine that was compromised during the Epsilon compromise back in April. Actually, I received two of them. One was the “standard” Adobe phish email. The other was similar but referenced Limewire instead of Adobe.

Security framework document published

The Online Trust Alliance has published a security framework for ESPs.
Overall, I think it’s a useful starting point. I don’t agree with all of their suggestions. Some of them are expensive and provide little increase in security. While others decrease security, like the suggestion to force regular password changes.
I think the most important part of the document is the question section. The key to effective security measures is understanding threats. Answering the self assessment questions and thinking about internal processes will help identify potential threats and their vectors.
The document is not a panacea, and even companies that implement all of their recommendations will still be open to attacks from other avenues. But it certainly is a very good way to open the security discussion.

Epsilon: Calm and Cool Tempered

Stefano over at emailmarketingblog.it translated our blog post about Epsilon into Italian: Epsilon e la sicurezza dei dati sensibili: calma e sangue freddo.

Epsilon – Keep Calm and Carry On

There’s been a lot of media coverage and online discussion about the Epsilon data breach, and how it should be a big wake-up call to email recipients to change their behavior.
There’s also been a lot of panic and finger-pointing within the email industry about What Must Be Done In The Future. Most of the “you must do X in response to the data loss” suggestions are coming from the same people and groups who’ve been saying “you must do X” for years, and are just trying to grab the coattails of the publicity about this particular incident, though.
Not many people seem to be talking honestly about what this will really mean to an individual recipient whose email address Epsilon lost, though. I’m going to try to answer some questions I’ve seen asked realistically, rather than with an eye to forwarding an agenda.
1. Who are Epsilon?
Epsilon are an Email Service Provider, or ESP. That means that they handle sending email on behalf of other companies. If you’re on a company’s mailing list – you’re getting regular newsletters or special offers or any sort of email advertising – the odds are very good that the company isn’t sending you that email themselves. Instead they’re probably contracting with one of hundreds of ESPs to send the email for them. This is a good thing, as sending email to a lot of people “properly” such that it’s delivered to them in a timely fashion, it’s sent only to people who want it and so on is quite difficult to do well and any ESP you choose is likely to be better at it than a typical company trying to start sending that bulk mail themselves.
2. What happened at Epsilon?
The what is pretty simple – somebody stole a list of names and email addresses of people who were being sent email via Epsilon. Nobody outside of Epsilon and law enforcement really know the details of how it was done, though lots of people are speculating about it.
3. Is this identity theft? Do I need to check my credit rating and so on?
No, it’s not something that’s going to lead to identity theft. All that was stolen was your name, your email address and some of the companies who send you email. Your postal address, credit card numbers, social security numbers and so on aren’t at risk, even if you’ve given those to the companies who are sending you email. The only information those companies passed to Epsilon were your name and email address, nothing more, so that’s all that was stolen.
4. Is this common?
Yes, it happens all the time. I use tagged email addresses when I give them to a company, and I’ve done so fairly consistently for the better part of two decades. That lets me track when email addresses are leaked, by who and to whom. Email addresses you give to a company leak to spammers all the time. That’s true for huge companies, tiny one-woman companies, tech-savvy companies, everyone.
5. How do email addresses leak from companies to spammers?
There are a lot of ways