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Large hosting firm hacked, credit cards exposed By Rawlson O'Neil King, theWHIR.com April 4, 2000 -- (WEB HOST INDUSTRY REVIEW) -- Caveat emptor still remains the lingua franca of the Web hosting industry. Despite advances in hosting automation and e-commerce technologies, hosting firms still remain vulnerable to comprised security. This fact was clearly made evident yesterday after a computer criminal stole over 46,000 client records from ADDR.com, a prominent, independently owned shared hosting firm. Included in the records was not only account information such as user names and passwords but also credit card data, constituting a huge breech of security for the Colorado-based company. In an extremely brazen act, the hacker who stole this information actually contacted a MSNBC journalist and sent him a small sample of the information taken. This sample confirmed the fears that the hacker did obtain the private files of ADDR.com clients. All customers of ADDR.com are thus advised that there is a high potential of their credit cards being compromised, and that they should take precautions to ensure that there are not defrauded. Anyone with a shared hosting account at ADDR.com, should call their credit card issuer immediately to obtain a report concerning recent transactions. According to previously published reports, some of this credit card information appears to be in circulation in the computer underground. Four customers are already confirmed victims of credit card fraud. This is quite troublesome because as with most shared Web hosting firms, ADDR.com primarily caters to small and mid-sized businesses. The company is particularly popular because its low monthly fees are amongst the cheapest on the Internet. For these reasons, all small business users should avoid buying Web hosting services from ADDR.com, especially since the company has not yet even commented on the alleged thief. This incident indeed proves that small and mid-sized businesses must be very cautious when buying hosting services. Before buying Web services online with your credit card, I suggest that you first call the shared Web hosting firm to determine whether credit card information can be transferred by phone. If not, you should investigate using one-time, disposable credit numbers not unlike those offered by American Express. If you must use a credit card online at a shared Web host however, ensure that it is a card with a low credit limit. You also should ensure that the business practices of your potential host are sound before you buy. The best way to determine whether your potential host engages in principled business practices is by checking the company out with the Better Business Bureau. In the case of ADDR.com, the company has an "unsatisfactory" record. According to the Better Business Bureau, ADDR.com has shown a pattern of non-response to consumer complaints. It is not evident how this unsatisfactory record will change in light of this security debacle. About the Author
Rawlson O'Neil King is a managing editor and analyst at the Web Host Industry Review. Before joining theWHIR, Mr. King was Director of Corporate Communications at WebHosting.Com. During his tenure at Canada's most successful Web host, he established ineedsupport.com, the first branded destination customer care site in the shared hosting industry. He has prior experience as an IT consultant who served non-profit organizations, government and private industry. He holds a Bachelor of Journalism degree from Carleton University. Mr. King's column appears in theWHIR weekly.
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