1. Playstation Network Service Outage
Date: April 20, 2011–
While not the biggest security breach in history, the hacking and shutting down of Sony's Playstation Network will go down as one of the most poorly managed corporate crises in history. What started as a hack by the international hacker collective known as Anonymous, snowballed into a nearly month-long worldwide service outage which lead to the theft of personal data from over 77 million user accounts.
To make matters worse, Sony waited a week after the initial hack to inform users that their information may be at risk, as well as its repeated attempts to restore the PSN service. It was revealed that while Sony encrypted user's credit card info, their other information was not. In an interview with Bloomberg, Sony spokesperson Shigenori Yoshida said that all services would not be back up and running by May 31, 2011.
As of today, May 12, 2011, the Playstation Network is still down. Users are not able to play any PS3 content downloaded from the Playstation Store, nor are they able to use online video services like Netflix and Hulu.
To its credit, Sony has offered $1 million identity theft insurance to all PSN and Qrocity users, and says that it has not seen any evidence of credit card fraud as a result of the hack. Still: poor security + poor public relations plan + poor contingency plan + poor solutions = FAIL.