A virtual safe deposit box is meant to hold your most precious information. So, it’s prudent to ask your service provider exactly how they store your information? In light of the recent security breach at RockYou.com, where 32 million passwords were exposed, your provider should, at the very least, publish a security policy clearly stating how information is stored.
Your provider should encrypt (hash) passwords that are stored in a database. Passwords can be further disguised through a technique called salting, where additional data is stored with the password prior to hashing. If the database is hacked, the passwords will be unreadable. Salting the passwords makes it far more difficult for a password cracker program to decipher your password.
A more secure approach would be to use OpenID or RPX for authentication. This way, passwords are stored off-site. Some OpenId providers, like MyOpenId, also offer SSL certificate sign in and two-factor authentication.
Additionally, your service provider should prevent their database from being hacked by guarding against SQL injection attacks. This security breach allows a hacker to enter database commands into an input box. If successful, this technique reveals details about the database, which allow the hacker to steal information. Input data should be sanitized using tools such as AntiXSS. Another defensive strategy is to query the database exclusively through stored procedures and disallow the use of Dynamic SQL.
Make sure to change your password often. If you suspect a security breach, change your password immediately and contact your service provider. Learn how to create strong passwords and avoid phishing attempts. Once your information is compromised, you will not get a second chance.
James Bell
Sources
RockYou Hacker: 30% of Sites Store Plain Text Passwords
by Jolie O'Dell
One Of The 32 Million With A RockYou Account? You May Want To Change All Your Passwords. Like Now.
by MG Siegler
RockYou Hack: From Bad To Worse
by Nik Cubrilovic