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Data Protection

What is Yahoo Data Breach?

Two massive data breaches at Yahoo — one in 2013 affecting all 3 billion accounts and another in 2014 affecting 500 million accounts — making them the largest data breaches in history by number of affected users.

Also known as: Yahoo Hack, Yahoo Data Leak, Biggest Data Breach Ever

Yahoo holds the record for the largest data breach in history — all 3 billion user accounts were compromised. The breach wasn't disclosed for three years, and Yahoo was in the process of selling to Verizon when the full scope was revealed.

Timeline

  • 2013: State-sponsored attackers breach Yahoo — all 3 billion accounts affected
  • 2014: A separate breach compromises 500 million accounts
  • September 2016: Yahoo discloses the 2014 breach (2 years late)
  • December 2016: Yahoo discloses the 2013 breach, initially claiming 1 billion accounts
  • October 2017: Yahoo revises the 2013 breach to all 3 billion accounts

What Was Exposed

  • Names, email addresses, phone numbers
  • Dates of birth
  • Hashed passwords (MD5 — a weak algorithm)
  • Security questions and answers (some unencrypted)
  • Forged authentication cookies (allowing access without passwords)

Impact

  • Verizon reduced its acquisition price by $350 million (from $4.83B to $4.48B)
  • Yahoo's CISO resigned
  • The breach exposed the danger of security questions as authentication (many people reuse answers)
  • Millions of credentials were sold on dark web marketplaces
  • Credential stuffing attacks skyrocketed — hackers used Yahoo passwords to break into other accounts

Lessons

  1. Don't reuse passwords — the Yahoo breach fueled attacks on millions of other sites
  2. Security questions are not secure — treat them as secondary passwords (use random answers stored in a password manager)
  3. Companies hide breaches — Yahoo sat on the information for years
  4. MD5 is broken — any company still using it for password hashing is negligent

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