The LinkedIn hack: what the experts think
newstatesman.com
newstatesman.com
http://blog.linkedin.com/2012/06/09/an-update-on-taking-step...
"First, it’s important to know that compromised passwords were not published with corresponding email logins. At the time they were initially published, the vast majority of those passwords remained hashed, i.e. encoded, but unfortunately a subset of the passwords was decoded. Again, we are not aware of any member information being published at any time in connection with the list of stolen passwords. The only information published was the passwords themselves."
Look, either LinkedIn knows that rest of the information was stolen or they don't. If it was stolen then people need to be told, not fobbed off with this 'only the passwords were published'. The publishing of the passwords is irrelevant. What was taken? The other possibility is that LinkedIn doesn't know what was taken.
"Under this team’s leadership, one of our major initiatives was the transition from a password database system that hashed passwords, i.e. provided one layer of encoding, to a system that both hashed and salted the passwords, i.e. provided an extra layer of protection that is a widely recognized best practice within the industry."
That doesn't address the issue of which algorithm is being used. At worst it sounds like they've updated to the late 1970s. Why not say the algorithm? Because...
"We want to be as transparent as possible while at the same time preserving the security of our members without jeopardizing the ongoing investigation."
Basically, they don't believe in Kerckhoff's Principle and think they 'preserve' security by being obscure. That was further reflected in Reid Hoffman's interview the other day when he said that a variety of security measures were put in place but that talking about them would be insecure.
http://video.ft.com/v/1681242005001/LinkedIn-No-customer-acc...
But it also has to be understood: Anything less than good hashes with good salt is going to be worthless. They used a plain SHA1 hash with zero salt, making it relatively trivial to get through that security 'layer'. It's like an unlocked door.