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SmartHost Cybersecurity Incident
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SmartHost Cybersecurity Incident

lsmithx2lsmithx2 Member
edited January 18 in General

I got this email this morning so thought I would share.

Notice of Cybersecurity Incident

Attn: -

We are writing to notify you of a recent event that may have impacted your personal information.
At this time, we have no indication of fraudulent use of your personal information as a result of this incident.
Nevertheless, we are notifying you out of an abundance of caution to explain the circumstances as we understand them.

What Happened
SmartHost LLC recently became aware in late December 2023 of a cybersecurity incident impacting its client/billing platform.
An individual(s) accessed SmartHost's client/billing system administrative areas without authorization, including gaining access via a 3rd party vendor module.
The individual(s) claimed to have downloaded customer data from SmartHost's computer systems, then threatened to post and disclose the data on an Internet forum.
Upon being made initially aware of a potential breach, SmartHost immediately began an investigation into the incident.
Although no data has been released that we have seen by this individual(s) as of this time, SmartHost has determined the client/billing system was indeed breached.

What information was potentially accessed?
The compromised data would include client names, address information, phone numbers, email addresses, user names, and account/service passwords
SmartHost does not store financial information on this platform, such as credit/debit card information, which would be stored directly with our 3rd party credit card processor.
SmartHost does not have any more sensitive information about our client base such as financial information, social security numbers, ID numbers, drivers license information, etc...

What We Are Doing
We take the security of our customers’ data seriously, and after SmartHost became aware of the event, we took immediate measures to investigate and remediate the incident.
We have implemented additional safeguards to improve security related to 3rd party software/modules, and the client/billing platform as a whole.
When SmartHost was made aware of the potential breach, we immediately performed global password resets for all client accounts and the server/service passwords that we could.
We also updated all internal system access methods/connectivity.
We have also hired external security consultants to review the matter and assist as well.
Please be assured that we take data security and confidentiality very seriously.

Steps SmartHost has taken to implement additional layers of security (not necessarily in this order):
Identified/removed the primary vulnerability associated with this incident
Global password resets for all users/systems
Update platform security settings and access credentials
Collaborated with cybersecurity specialists to review the situation
Reinstall clean system platform
Notified client base about the incident
Strengthen login credentials/methods and continue to enhance login protocols/procedures and other security measures
Continuing to monitor the situation and investigate this incident

Why did it take SmartHost so long to notify me about this?
SmartHost’s investigation is ongoing. As soon as SmartHost learned that its environment had been accessed by an unauthorized party, SmartHost immediately commenced the investigation, including working with third-party security consultants. System lockdowns were immediately implemented even before we could completely verify the breach. Simultaneously, SmartHost was dealing with another security issue at the same time, including DDOS/hack attempts against our VPS service platform, and we were unsure how/if the two issues were related. It took some time to diagnose, and we have only recently concluded by our staff, external security consultants, and software vendors, that they were unrelated issues.

Do you know who accessed the information illegally?
No, the identity of the individual(s) responsible for this incident is still being investigated; however, they refer to themselves as "Scavenger" and the "whmcssec" team.

Is the stolen information being misused?
At this time, there is no evidence that your information has been misused.
SmartHost has not received any reports of misuse of specific individual’s personal information as a result of this incident.
We understand that this same individual(s) have conducted systematic similar breaches recently of hundreds of other web hosting providers in the industry.
It is our understanding that the system breach was done to prove a point, and force hosting providers to make security policy/procedure changes.

Does this mean I am a victim of identity theft or identity fraud?
No. This means that some personal information is in the hands of unauthorized individual(s), and they could use it to commit identity theft or identity fraud.
If you believe you are the victim of identity theft or fraud, you should immediately report it to local law enforcement.

What You Can Do
There is no reason to believe that you need to take necessary action at this time regarding the personal contact information.
We do recommend again changing your login passwords to the client/billing interface, and to any server/system provided with your SmartHost service, in case global resets did not complete such.
We also recommend implementing two-factor authentication (2FA) on your account, if not done so already, which can be done at:
https://www.smarthost.net/index.php?rp=/user/security
As a best practice, we recommend you remain vigilant and promptly report any suspicious activity, or suspected identity theft, to the proper law enforcement authorities and financial and banking service providers.

On behalf of SmartHost, we apologize for this security breach and for any concern this may have caused.
We have subsequently taken, and continue to take, a number actions to ensure that this incident is thoroughly resolved, and to minimize the risk of a similar incident recurring
If you have any further questions, you are welcome to contact us by responding to this email notification.

SmartHost LLC
Henderson, NV USA
http://smarthost.net
[email protected]

Thanked by 1Carlin0

Comments

  • Letbox too.

  • A month to alert customers about a breach? 😂

  • @corbpie said:
    A month to alert customers about a breach? 😂

    Thanked by 1tentor
  • NeoonNeoon Community Contributor, Veteran
    edited January 18

    He denied it on LES a few hours before, also attacked a user. gg

    Thanked by 2bench fluffernutter
  • @Neoon said:
    He denied it on LES a few hours before, also attacked a user. gg

    Why would they try and deny it and attack a user knowing that it was indeed the truth?

  • neohneoh Member

    smarthost

    Thanked by 2sasslik _MS_
  • zedzed Member

    reasons not to renew:
    google captcha to login client area
    pin code to create support ticket
    ip address to create support ticket
    "service password"? to create support ticket
    network status not updated
    billing system hacked (added 20240118)

  • FatGrizzlyFatGrizzly Member, Host Rep

    @zed said:
    reasons not to renew:
    google captcha to login client area
    pin code to create support ticket
    ip address to create support ticket
    "service password"? to create support ticket
    network status not updated
    billing system hacked (added 20240118)

    Whats wrong with captcha and ip address for tickets? Helps in diagnosis. (assuming ip is server ip, anyways your ip is logged)

  • zedzed Member

    @FatGrizzly said:

    @zed said:
    reasons not to renew:
    google captcha to login client area
    pin code to create support ticket
    ip address to create support ticket
    "service password"? to create support ticket
    network status not updated
    billing system hacked (added 20240118)

    Whats wrong with captcha and ip address for tickets? Helps in diagnosis. (assuming ip is server ip, anyways your ip is logged)

    This amount of friction to simply open a ticket probably seems like a great way to cut down on work from a provider's pov, but I'm a customer and it's annoying and aggravating.

    Especially when I'm having to open a ticket to find out why my service is offline because there's no info on the status page.

  • FranciscoFrancisco Top Host, Host Rep, Veteran

    I wish Shawn and his team all the best in this, that's brutal.

    Francisco

  • Choices were made:

    No notification was sent out when the week plus ddos attack was happening.

    Weeks to send out notification that a security breach occurred.

    Bad choices.

    Communication is both cheap, easy and effective.

    Thanked by 22bluesc jkl9
  • SmartHostSmartHost Patron Provider, Veteran

    @Neoon said:
    He denied it on LES a few hours before

    Untrue.

    ~ SMARTHOST

  • SmartHostSmartHost Patron Provider, Veteran
    edited January 18

    @corbpie said:
    A month to alert customers about a breach? 😂

    In hindsight, that should absolutely have been faster.
    We had our hands full dealing with the issue (investigation/patching/securing), a very sophisticated attack on our VPS platform occurring over same time period, and a huge amount of tickets resulting from such.
    To be blunt, we were just completely overwhelmed by the workload, and just did the best we could, working night and day to get it sorted.
    I don't wish any other provider to go thru the same, and we have learned much from the situation.

    ~ SMARTHOST

  • SmartHostSmartHost Patron Provider, Veteran

    @Francisco said:
    I wish Shawn and his team all the best in this, that's brutal.

    Thanks.
    I think I aged a decade dealing with all this. ;-(

    ~ SMARTHOST

  • So, it is not just me. :/

    I bought a server from them last week and I had to ask them to approve my purchase because of IP geolocation issues. I think they have beefed up their service immediately after the breach.

  • HostEONSHostEONS Member, Patron Provider

    Wish best of luck to Shawn and I hope everything is recovered quickly

    This can happen with any provider, not just @SmartHost

    Even the largest providers have had security incidents

  • 0xC70xC7 Member

    This can happen with any provider

    :'(

  • HostEONSHostEONS Member, Patron Provider

    Yup nothing is 100% HACK PROOF unless you just keep it offline ... now someone can even argue about that ....

  • @HostEONS said:
    Yup nothing is 100% HACK PROOF unless you just keep it offline ... now someone can even argue about that ....

    Can confirm, idling is a good way to protect against hacks

    Thanked by 2HostEONS 1allen
  • NeoonNeoon Community Contributor, Veteran
    edited January 19

    @SmartHost said:

    @Neoon said:
    He denied it on LES a few hours before

    Untrue.

    ~ SMARTHOST

    People tagged you, you stayed silent.
    You even insulted members on LES.
    Yesterday you started sending an announcement to your costumers about the breach, days after it was already getting discussed on LES that the breach was obvious.

  • ArirangArirang Member
    edited January 19

    @HostEONS said:
    Wish best of luck to Shawn and I hope everything is recovered quickly

    This can happen with any provider, not just @SmartHost

    Even the largest providers have had security incidents

    Yes this can happen.
    But after things happen, but they keep silent and dont give detail information about what happen behind.
    They just send an email few minute ago before reintalling host.

    "Node xxx will be down for maintenance to resolve recent ddos/hack issues"

    I got first email like above one one month ago after that got few mails.

    What issue?!

  • PulsedMediaPulsedMedia Member, Patron Provider

    What billing system and module?
    Some WHMCS module once again?

  • PulsedMediaPulsedMedia Member, Patron Provider
    edited January 19

    @HostEONS said:
    Yup nothing is 100% HACK PROOF unless you just keep it offline ... now someone can even argue about that ....

    Not even then if it's valuable enough.
    In the late 90s/early 00s we used to joke no computer is safe, even if you put it 100meters in the ground in a steel reinforced bunker, especially if it's power on.

    The question is of only is that data valuable enough?

    I'd hazard a guess; something the practical and cheap solution for immortality and 300+IQ without negative side effects OR unlimited free energy and there's nothing on this planet which could secure that information.
    You can merely delay the inevitable for such valuable data.

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