May 05, 2011
In one of the biggest personal data thefts in recent history, leading electronics manufacturer Sony could be liable for major penalties following the loss of 77 million people's confidential information.
On Wednesday, April 21, hackers gained access to Sony’s Playstation Network, the online service offered to all Sony Playstation 3 users. On said network, customers can purchase games and other multimedia using their credit cards but this week Sony officials revealed that such personal information could now be in the wrong hands.
UK consumer rights group Which? says it's very unlikely that PlayStation owners will have to pick up any costs in the event that their credit cards are used for fraudulent activity. According to one leading solicitor, Sony's PSN terms and conditions – which all users must agree to before accessing the service – means legal complaints are unlikely to lead to compensation.
"Our applications are provided on an 'as is' basis," reads the Tamp;Cs. "At times, applications may not be available or may be affected by faults or maintenance work, or by circumstances outside our control. No warranty is given about the quality, functionality, availability or performance of our applications or any content accessed via our applications. We reserve the right to change, suspend or withdraw all or any part of any application and to suspend your access to the application, at any time without notice."
However, while Sony is "unlikely" to face legal action from gamers upset over the PlayStation Network (PSN), it is "probably" in breach of the Data Protection Act over the identity theft furore. The huge security leak means Sony is in breach of the Data Protection Act 1998 - and could face claims from those impacted.
According to industry press Eurogamer, the Information Commissioner’s Office (ICO) has confirmed that it intends to talk to Sony over the data theft, as Sony allegedly stored data without the necessary encryptions.
