Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Cyber Insecurity: Ashley Madison Encrypted Passwords Cracked

Author: Scarinci Hollenbeck, LLC

Date: October 9, 2015

Key Contacts

Back

By now most people know that the extra-marital affairs website, Ashley Madison, was hacked, and its data posted to the Internet.

This included the passwords to all accounts. However, the site had secured them using a hashing algorithm so slow and mathematically demanding that even those with the most sophisticated computers did not bother trying to crack them. One security expert who did try could only crack .0668% of the passwords, and those only because they were weak.

Surprisingly, a group of amateurs recently announced that they had cracked over 11 million of these passwords. Anticipating 15 million shortly, this represents about 41.7% of all the passwords. The key to their success wasn’t a supercomputer, or the soon-to-be quantum computer, but rather a security flaw making these particular 15 million passwords, in the estimate of one cracker, about one million times faster to crack.

The crackers exploited one of two flaws because an MD5 hashing method, considered weak by most experts, secured the passwords. Unlike the rest of the passwords, which a better but slower hashing secured, these used the faster but more vulnerable MD5 method. Cracking these is the cyber equivalent of getting Al Capone on tax evasion and not murder or racketeering.

It seems that Ashely Madison was generally aware of this flaw because it could have rehashed the unsecured passwords but didn’t. One of the team cracking the passwords told Ars Technica, “We can only guess at the reason the [hash] value was not regenerated for all accounts. [Perhaps], the company did not want to take the chance of slowing down their site while the [hash] value was updated for all 36+ million accounts.”

The cracking of these passwords demonstrates two important points. As always, it is necessary to have at least a moderately strong password. Even the best security algorithms cannot truly protect weak passwords. Also, even if the currently used encryption method is highly secure, artifacts or other parts of a system with less security can still be compromised. Further, there is a real danger of a snowball effect. That is, once crackers expose the weak parts of an encryption, they can use the information gained from those cracks to compromise better encryption elsewhere.

In a situation like this, where Ashley Madison engineers seemed aware of the problem but chose not to correct it for efficiency purposes, the aggrieved users of the site could assert claims of gross negligence in a class action setting. The facts and circumstances of this incident make that unlikely. However, were the site more innocuous, that threat would be real.

Related Article:
What is Cyber Security? It Starts with Cryptology.

How many NSA does it take to anger Wikimedia?

Proposed Bill Would Create New Jersey Cybersecurity Commission – But is that enough?

Additional information and resources:
Cyber Security And Data Protection Group

Intellectual Property And Technology

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
IP Infringement: What Steps Can You Take If You're Affected? post image

IP Infringement: What Steps Can You Take If You're Affected?

IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]

Author: Michael Mietlicki

Link to post with title - "IP Infringement: What Steps Can You Take If You're Affected?"
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next post image

Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next

When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]

Author: Sean M. Pena

Link to post with title - "Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next"
BESS Interconnection: Managing Grid, Cost, and Schedule Risk post image

BESS Interconnection: Managing Grid, Cost, and Schedule Risk

For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]

Author: Nicholas Wall

Link to post with title - "BESS Interconnection: Managing Grid, Cost, and Schedule Risk"
Navigating Director and Officer Liability in Times of Financial Distress post image

Navigating Director and Officer Liability in Times of Financial Distress

Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]

Author: Michael Mietlicki

Link to post with title - "Navigating Director and Officer Liability in Times of Financial Distress"
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey post image

Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey

For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]

Author: Nicholas Wall

Link to post with title - "Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey"
What Business Owners Get Wrong Before Meeting a Litigation Attorney post image

What Business Owners Get Wrong Before Meeting a Litigation Attorney

What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]

Author: Michael Mietlicki

Link to post with title - "What Business Owners Get Wrong Before Meeting a Litigation Attorney"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!