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Business Fraud

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Data Breach Exposes Millions to Phishing Scams

Data Breach Exposes Millions to Phishing Scams

The following paper is about a data breach involving the world’s largest permission-based email marketing provider. The name of the company is Epsilon, “an Irving, Texas based marketing firm that develops and manages databases and offers marketing analytics and delivery services such as email communications” . Companies hire Epsilon to send out a total of more than 40 billion messages on their behalf each year.

On March 30th, 2011 Epsilon announced that unknown intruders had broken into one of its email servers and accessed the names and email accounts of some of its 2,500 corporate customers, including 7 of the Fortune 10. Companies affected by the breach include the grocery store Kroger, Walgreens, Best Buy, Tivo and significant household banks such as JP Morgan Chase, U.S. Bancorp, Citigroup, Capital One, and Barclays Bank to name a few. Roughly 50 companies were affected by this major breach one that the Guardian called “the largest Internet security breaches in U.S. history” . Experts say the good news is this was not credit card data, Social Security numbers, or account numbers and passwords. The hackers mainly got email addresses and names. Even though these scammers did not receive credit card information or social security numbers it is still a major breach that can cause serious damage to its clients. This is a concern because of a crafty way to obtain personal information from someone through a technique called phishing.

“Phishing is a type of Internet fraud that seeks to acquire a user’s credentials by deception. It includes theft of passwords, credit card numbers, bank account details, and other confidential information. Phishing messages usually take the form of fake notifications from banks, providers, e-pay systems…...

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