Sony fined R3.5-million for PSN security breach

Sony Computer Entertainment Europe has received a fine of £250,000 from the UK Information Commissioner’s Office (ICO). That’s R3,575,259 by today’s exchange rate (1 GBP = 14.3010 ZAR).

This is due to the April 2011 hacking attacks against the PlayStation Network and Sony Online Entertainment service in which over 77 million user accounts were breached and personal data stolen, including credit card and billing details. The attacks left the PSN offline for close on a month.

The ICO ruled that this constituted a serious breach of the UK data protection act, saying that the attack could have been prevented had Sony kept their system software up to date.

Sony disputes the ruling and is planning to appeal.

Speaking to The Telegraph, Deputy Commissioner and Director of Data Protection at the ICO, David Smith said:

“If you are responsible for so many payment card details and log-in details then keeping that personal data secure has to be your priority. In this case that just didn’t happen, and when the database was targeted – albeit in a determined criminal attack – the security measures in place were simply not good enough.”

“There’s no disguising that this is a business that should have known better. It is a company that trades on its technical expertise, and there’s no doubt in my mind that they had access to both the technical knowledge and the resources to keep this information safe. The penalty we’ve issued today is clearly substantial, but we make no apologies for that. The case is one of the most serious ever reported to us. It directly affected a huge number of consumers, and at the very least put them at risk of identity theft.”

Sony issued a statement in response:

“Sony Computer Entertainment Europe strongly disagrees with the ICO’s ruling and is planning an appeal.

“SCEE notes, however, that the ICO recognises Sony was the victim of ‘a focused and determined criminal attack,’ that ‘there is no evidence that encrypted payment card details were accessed,’ and that ‘personal data is unlikely to have been used for fraudulent purposes’ following the attack on the PlayStation Network.

“Criminal attacks on electronic networks are a real and growing aspect of 21st century life and Sony continually works to strengthen our systems, building in multiple layers of defence and working to make our networks safe, secure and resilient. The reliability of our network services and the security of our consumers’ information are of the utmost importance to us, and we are appreciative that our network services are used by even more people around the world today than at the time of the criminal attack.”

Do you think Sony should take a hit to their bank account as punishment for the PSN breach? LEt us know your thoughts in teh comments below and on the MyGaming forum.