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Incident Type:

Incident Type: Breach of Confidentiality

Description: The breach involved the unauthorized access and theft of sensitive personal data, including names, email addresses, phone numbers, birth dates, and encrypted passwords from $3$ billion Yahoo accounts.

Asset:

Asset Type: Online service

Asset Description: Yahoo$$s user accounts and online service platform. The breach exposed data stored across all user accounts on Yahoo's network.

Asset Owner: Yahoo Inc.

Threat Actor:

Threat Actor Type: ExternalThreat Actor Description: The attack was likely carried out by a hacking collective based in Eastern Europe, possibly with links to Russian intelligence $($FSB$).$ These actors exfiltrated sensitive user data.

Action:

Action Type: Exfiltration

Action Description: The attackers stole a massive dataset, including personally identifiable information $($PII$),$ encrypted passwords, and security question answers, which could be easily decrypted or used for further attacks $($i$.$e$.,$ account takeovers$).$

Impact:

Impact Type: Data Compromise

Impact Description: The breach compromised $3$ billion Yahoo accounts. Stolen data included personal information and weakly encrypted passwords, which are vulnerable to cracking. The exposure of backup emails and security questions increased the risk of account takeovers.

Discovery:

Discovery Date: $2017($when Verizon, who had acquired Yahoo, confirmed the full extent of the breach, covering all $3$ billion accounts$)$How was the breach discovered?: The breach was first reported by Yahoo in $2016,$ but it was later confirmed that all $3$ billion accounts were compromised. Verizon and forensic experts confirmed this after reviewing the incident.

Stolen Data:

Types of Stolen Data:

Personally Identifiable Information $($PII$)($names$,$ email addresses, phone numbers, birthdates$)$Account Credentials $($encrypted passwords, though weak encryption made them vulnerable$)$Security Question Answers $($used for password resets$)$Backup Email Addresses

Actions Taken by the Victim:

Action Type: Notification

Yahoo disclosed the breach to affected users and law enforcement once it became fully aware of the scale of the breach.

Action Type: Investigation

Verizon, after acquiring Yahoo, initiated an internal investigation to confirm the breach's full scope, with assistance from external forensic experts.

Action Type: Legal Action

Yahoo faced shareholder lawsuits and subsequent legal challenges, including a reduction in the price of the Verizon acquisition by $$350$ million due to the breach.

Consequences:

Consequences:

Identity Theft: The stolen data can be used for phishing attacks, email fraud, or even identity theft.Account Takeovers: Fraudsters can use the exposed information, especially the weakly encrypted passwords, to compromise other online accounts.Reputation Damage: Yahoo$$s brand and security reputation were severely impacted, leading to financial liabilities, legal actions, and loss of user trust.

Long$-$Term Impact:

Impact Description:

Widespread fraud, increased phishing and identity theft, and damage to Yahoo$$s $($and Verizon$$s$)$ reputation. The breach also highlighted the risks of reusing passwords across multiple accounts.

Financial Impact:

The breach contributed to a $$350$ million reduction in the sale price of Yahoo to Verizon. Yahoo was also hit by shareholder lawsuits, which could escalate Verizon$$s financial liabilities.