Sony Takes $171m Hit From Network Hacking

According to figures released to investors by Sony, the PlayStation Network outage will cost the company at least $171 million - and that does not include any expenses relating to lawsuits that may arise out of the misuse of personal data as a result.  Given a class action suit has been filed in Canada against the company, damages could add millions to that estimated cost.Back in April, the gaming technology company realised that their online gaming network had a security breach; hackers had gained access to its network and to the personal details of hundreds of millions of online gaming users on the PlayStation Network and Qriocity networks.  Amongst that information was names, addresses, and credit card numbers.The cost of rebuilding the network, paying for credit protection services for its customers plus paying compensation such as free products and services is estimated to reach at least $171 million.Other companies that have been hit recently by similar problems include retailer TJX Companies, which estimated it incurred $118m in costs from hackers getting access to around 45 million card accounts, whilst Heartland Payment Systems reserved over $100m for lawsuits arising from a hacking incursion that gave access to up to 100 million cards.Of course, the majority of companies do not have anything like that number of accounts held, and will not be liable for millions of dollars in compensation if anything happens - but it does go to show how quickly the costs can mount, and how important it is to be confident about the security and support of your web hosting provider.