Ford failed to monitor access to the database. The whole problem would have been avoided if they just emailed the service manager every time a database lookup is made. Unfortunately he is in Texas, so Ford needs to be 51% at fault for a judgement. The lawyers are playing this out in the press so Ford will pay to make it go away, even though they would likely prevail in a Texas court.
Ford needs to cut this kid a check for $500k, and implement some better auditing of access to the database.
Edit: No, you don't. The lock is just a password. You don't store unhashed passwords.
Have an override code to reset the lock code in the car. That'd stop things like this because the original keys would no-longer function and the owner would know that something was wrong. But if the owner loses her keys, then she'll have the new keys anyway and won't have to worry about the old ones being found and used against her.
The module that responds to the keyless entry signals can easily be reprogrammed, often without tools. However, sometimes they can only hold so many codes before they get "full" and have to be replaced. Honda is 10, I think. Ford is probably similar. So don't lose your keys too often.
I called up my nearest Honda dealership, gave them the VIN, and they gave me the radio code.
I like that they can do that. Maybe it makes more sense from a security standpoint if I would've had to call some centralized Honda location, but that doesn't really solve the problem, does it? I have the VIN -- so does anyone who looks through my windshield. I have the title number -- so does the dealership who originally sold the car. We'd have to enter a few concurrent bits of information to verify that I own it, that this car I'm calling about is mine, and I can identify both it and myself, and then the centralized Honda location would have to be able to verify all that on their end.
Or we can assume some modicum of trust at dealerships, and accept the fringe cases where criminals use information they wouldn't have access to in a perfect world.
The article doesn't specify but does imply that, in this case, the dealer in question made more PIN requests than is normal. If so, Ford should have seen that and investigated.
One interesting problem "security" guys have is overcomplicating plots. Your average meth head is waaay too zonked out of his mind to memorize which VIN goes with which radio, or even which OEM radios need a code.
Another problem is via the VIN they know instantly that your car is a '98. Well my cheapo commuter car is also a '98, and its approximately worthless at this point. Anyone stealing my worn out, partially broken, approx 2002 model year aftermarket deck pretty much deserves the pain they're about to experience. At a flea market I might be able to give it away... That may very well be Honda's point of view. Now try that again with a new 2013 $2000 GPS DVD player deck and they might hassle you.
[to the nitpicking gallery: yes - bad guy can use fake id to do this, but any key code pull should be accompanied by a letter to the registered dmv address notifying the pull - all simple checks that would make it harder, costlier and with more points where it could be caught]
iMHO, a better solution would be tracking how often locksmiths request for key codes and have an algorithm that can detect unusual patterns which will then be followed up by human eyes.