1.
Yahoo (Systems Development, Online Security, and Contingency Planning)
• Systems Development: Yahoo struggled with the development and
maintenance of its various systems, which led to a fragmented infrastructure that
was difficult to secure and manage. This made the company vulnerable to security
breaches.
• Online Security: Yahoo suffered one of the largest data breaches in
history between 2013 and 2014, where over 3 billion accounts were compromised. The
breach exposed weaknesses in their encryption methods and overall cybersecurity
posture.
• Backup and Contingency Planning: The breach went undetected for years,
suggesting deficiencies in Yahoo’s monitoring, incident detection, and contingency
planning capabilities. Their slow response further exacerbated the damage and
negatively impacted the company’s reputation.
1. Yahoo (Systems Development, Online Security, and Contingency Planning)
Systems Development:
• Background: Yahoo was once a leading internet service provider with a
wide array of services including email, news, and search engines. However, over
time, the company struggled with innovation and maintaining a cohesive technology
infrastructure. Its systems development was hampered by a lack of coordination
between its various services, leading to fragmented and outdated systems.
• Issue: Yahoo's inability to effectively update and secure its systems
left it vulnerable to attacks. The complexity and legacy systems were difficult to
integrate, making the company slow to react to security threats.
Online Security:
• Data Breaches (2013-2014): Yahoo experienced the largest data breaches
in history, where over 3 billion user accounts were compromised across multiple
breaches between 2013 and 2014. These breaches exposed user data such as names,
email addresses, passwords, phone numbers, and security questions.
• Weaknesses: The breaches were attributed to several factors, including
weak encryption practices, insufficient investment in security infrastructure, and
a failure to adequately protect their systems against known vulnerabilities. Yahoo
was criticized for its delayed response and lack of transparency, as it took years
for the breaches to be fully disclosed.
Backup and Contingency Planning:
• Response Issues: The prolonged time it took for Yahoo to detect and
respond to the breaches suggests significant deficiencies in their backup,
monitoring, and contingency planning. Yahoo’s failure to promptly inform users
about the breaches and to have robust plans in place to mitigate the damage further
compounded the situation.
• Impact: The breaches led to a significant drop in user trust and
ultimately affected Yahoo’s valuation during its acquisition by Verizon. The
company agreed to pay $117.5 million to settle a lawsuit related to the breaches.
