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TheStreet Open House

Dumbest of This Week's 5 Dumbest: Sony Makes World Safe for Hackers

NEW YORK ( TheStreet) -- Sony's (SNE) massive security breach was considered the dumbest thing on Wall Street this week by readers of TheStreet.

As of late Friday, about 34% of the 237 readers that took our poll thought that Sony's Swiss-cheese security system was particularly dumb.

This week, it was revealed that hackers gained access to yet another 24.6 million accounts, at least 12,700 non-U.S. credit or debit card numbers and expiration dates (although not the 3-digit security code on the back of credit cards), and about 10,700 direct debit records of certain customers in Austria, Germany, Netherlands and Spain.

The latest reported breach took place in the Sony Online Entertainment division -- which makes multiplayer online games including Free Realms and DC Universe Online -- and was directly tied to the infiltration of Sony's online PlayStation Network that the company copped to just a week ago and put roughly 77 million users' account information in jeopardy.

Sony hasn't exactly given PlayStation 3 users much confidence in the company's ability to keep information safe anytime soon.

In fact, security expert Dr. Gene Spafford of Purdue University testified against Sony during a meeting of the House Subcommittee on Commerce, Manufacturing and Trade on Wednesday. He explained that not only was Sony using outdated versions of Apache Web server software that were "unpatched and had no firewall installed," but that the problem was "reported in an open forum monitored by Sony employees" two to three months before the security breaches.

Sony claims the breach and the service outages that followed have cost the company upwards of $20 million. Gamers who've spent the last week calling credit agencies, cutting up credit cards and changing passwords surely don't feel much sympathy, especially in light of Sony's lax security.

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