"There were occurrences of Lish passwords in clear text in our database. We have corrected this issue and have invalidated all affected Lish passwords effective immediately."
Presumably, they know how many customers are affected, because they invalidated their passwords. They didn't tell us.
Why do you think companies can only do one thing at a time ? And where have you worked where software engineers are drafting press releases or conducting security audits ? And why shouldn't keeping customers (who have their own apps) informed be their top priority ?
Why do you think companies can only do one thing at a time?
Amdahl's law. Recovering from a catastrophic hack isn't parallellizable. Nobody can draft a press release before the security audit has been performed. You can't inform anyone before the security audit has been performed. The software engineers can't go to work before certain parts of the security audits have been performed. Certain parts of the security audit can't be performed before other parts have been performed. And where have you worked where software engineers are
drafting press releases or conducting security audits?
A bootstrapped startup? Depending on the scale of the company (and I have no clue how many people work at Linode), the work may be sequential simply by lack of manpower.All it takes is one debug log statement to leak through from development and you can be logging plain-text passwords on every login.
Also the social engineering implications could be huge. Many people use the same password across various sites so in theory there could be a lot of compromised email accounts. Which could then mean compromised internet banking sites, trading sites etc.
Nevertheless, this isn't the first time Linode has needed to spend their benefit-of-the-doubt points.
Also, access to LISH even without a root password provides access to some scrollback output, which could expose sensitive information.
Also, LISH allows multiple connections, all of which see the same console, so the attacker can just connect to it and wait for a root prompt to appear when root logs in next. (Does changing the LISH password prevent this attack if they're already connected? I doubt it.)
Also, most distribution boot processes can be messed with at boot from the console. For example, you can ctrl-c to stop important daemons from loading. In some cases you may be able to get a shell without the root password.
Also, Magic SysRq can be accessed over a serial console by sending a BRK. You do not need to be logged in to do this, and it could be used to kill processes, reboot, etc. I don't know if LISH allows sending BRK.
They've now reset all the passwords and fixed the bug that meant some of them were being stored without encryption. So what we're saying is there was window of a week or so where only LISH users affected by the clear text bug may have been open to an attack if they happened to use LISH during this time frame and the attacker was targeting them. Not great, I agree, but could have been worse.
Hopefully, they'll change their setup going forward so that each LISH connection to the same VM gets its own console.
The connection is to the same TTY when I log in via the web terminal and SSH at the same time, so if you are logged in via LISH anyone with the LISH password has access to the logged in user's console + scrollback.
I wasn't able to send BRK from Putty though.
It doesn't appear that you can reboot or enter single user mode from the LISH console login prompt.