Guidance Software Customer List Hacked

Guidance Software, whose Encase software is used heavily by law enforcement agencies for forensic investigations for computers, was hacked earlier this month.  Cyber thieves stole approximately 3,800 customer names and credit card information.  The database was unencrypted and stored not only credit card numbers, but the three-digit verification codes.  This is a violation of the guidelines that both Visa and MasterCard issue.  They require that information must be stored in encrypted databases and the three-digit code discarded after a transaction.  There is a penalty of $500,000 per incident.  According to a report in the Washington Post, at least one or more customers had unauthorized charges to their cards.

Guidance notified customers on December 7th of the hack.  There is no irony lost on anyone that a security company known for security and forensic software should suffer an attack such as this.  More details from the Post are here.