• Thu
  • Aug 21, 2014
  • Updated: 5:48am

Yahoo

Yahoo was founded by Jerry Yang and David Filo in January 1994 and was an early pioneer in the dotcom boom, but was quickly overhauled by Google and others. In 2008, it rejected a US$44.6 billion bid from Microsoft, and subsequently Yahoo’s market capitalisation slipped to just US$22.24 billion just three years later.

LifestyleTechnology

Yahoo e-mail passwords stolen, used to gather personal data

Security has been breached for the world's second largest e-mail service, in what is the second mishap for the company in two months

PUBLISHED : Friday, 31 January, 2014, 12:04pm
UPDATED : Friday, 31 January, 2014, 5:25pm

Usernames and passwords of some of Yahoo’s e-mail customers have been stolen and used to gather personal information about people those Yahoo mail users have recently corresponded with, the company said on Thursday.

Yahoo didn’t say how many accounts have been affected. Yahoo is the second-largest e-mail service worldwide, after Google’s Gmail, according to the research firm comScore. There are 273 million Yahoo mail accounts worldwide, including 81 million in the United States.

It’s the latest in a string of security breaches that have allowed hackers to nab personal information using software that analysts say is ever more sophisticated. Up to 70 million customers of Target stores had their personal information and credit and debit card numbers compromised late last year, and Neiman Marcus was the victim of a similar breach in December.

“It’s an old trend, but it’s much more exaggerated now because the programs the bad guys use are much more sophisticated now,” says Avivah Litan, a security analyst at the technology research firm Gartner. “We’re clearly under attack.”

Yahoo said in a blog post on its breach that “The information sought in the attack seems to be names and e-mail addresses from the affected accounts’ most recent sent e-mails.”

That could mean hackers were looking for additional e-mail. addresses to send spam or scam messages. By grabbing real names from those sent folders, hackers could try to make bogus messages appear more legitimate to recipients.

“It’s much more likely that I’d click on something from you if we e-mail all the time,” says Richard Mogull, analyst and CEO of Securois, a security research and advisory firm.

The bigger danger: access to e-mail accounts could lead to more serious breaches involving banking and shopping sites. That’s because many people reuse passwords across many sites, and also because many sites use e-mail to reset passwords. Hackers could try logging in to such a site with the Yahoo e-mail address, for instance, and ask that a password reminder be sent by e-mail.

Litan said hackers appear to be “trying to collect as much information as they can on people. Putting all this stuff together makes it easier to steal somebody’s identity.”

Yahoo said the usernames and passwords weren’t collected from its own systems, but from a third-party database.

Because so many people use the same passwords across multiple sites, it’s possible hackers broke in to some service that lets people use e-mail. addresses as their usernames. The hackers could have grabbed passwords stored at that service, filtered out the accounts with Yahoo addresses and used that information to log in to Yahoo’s mail systems, said Johannes Ullrich, dean of research at the SANS Institute, a group devoted to security research and education.

The breach is the second mishap for Yahoo’s mail service in two months. In December, the service suffered a multi-day outage that prompted Yahoo CEO Marissa Mayer to issue an apology.

Yahoo said it is resetting passwords on affected accounts and has “implemented additional measures” to block further attacks. The company would not comment beyond the information in its blog post. It said it is working with federal law enforcement.

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