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EMC’s Data Breach Cost $66 Million
Between April and June 2011, EMC spent $66 million handling the fallout from a March cyber attack against its systems, which resulted in the compromise of information relating to the SecurID two-factor authentication sold by EMC’s security division, RSA.
That clean-up figure was disclosed last week during an EMC earnings call, by David Goulden, the company’s chief financial officer. It doesn’t include post-breach expenses from the first quarter, when EMC began investigating the attack, hardening its systems, and working with customers to prevent their being exploited as a result of the attacks.
In spite of the breach, EMC reported strong second-quarter financial results, earning consolidated revenue of $4.85 billion, which is an increase of 20% compared with the same period one year ago. Meanwhile, second-quarter GAAP net income increased by 28% from the same period last year, to reach $546 million. The company saw large growth in its information infrastructure and virtual infrastructure products and services, including quarterly revenue increases of 19% for its information storage group.
Those results led executives to increase their financial outlook for 2011 and predict consolidated revenue in excess of $19.8 billion, which would be a 16% increase from EMC’s 2010 revenues of $17 billion.
Chinese Government Questioned About Cyber-attack
June 18, 2011 by admin
Filed under Around The Net
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The U.S. State Department questioned the Chinese government regarding an attack that had temporarily shut down the website Change.org after the site hosted a petition urging Chinese authorities to release artist Ai Weiwei from custody.
U.S. deputy assistant secretary Daniel Baer raised concerns about the attack in April with China’s foreign ministry, according to an official letter sent from the State Department to U.S. Rep. Rosa DeLauro (D-Conn.). Change.org obtained a copy of the letter and released it Tuesday.
The nature of those talks is still somewhat vague. The U.S. Embassy in Beijing said it had no current information on the matter and deferred to the State Department. China’s foreign ministry has yet to respond to a request for comment.
Change.org, an online petitioning platform, was the victim of a distributed denial of service (DDoS) attack originating from China on April 17. The attacks nearly brought down the site for days.
DDoS attacks can do this by using hundreds or thousands of hacked computers to drive traffic to a website. The data will become so overwhelming that the site will become inaccessible to users.
Change.org said the DDoS attacks from China continue to bring down the site intermittently. The FBI is investigating the case, said Benjamin Joffe-Walt, an editor with Change.org.