The Data Protection Regulation should be amended to force companies to disclose how passwords are stored
Over the last couple of days it has been disclosed that an amazing amount of personal data on 1.1 million Americans has been lifted from the US Nationwide insurance group. Passwords do not appear to be involved – it’s a storage of data rather than an interactive site. But the point is that this data would appear to have been unencrypted – at least the company concerned hasn’t specified one way or the other; and that’s the problem.
Time and again we learn of plaintext passwords being stolen. Plaintext is unacceptable, but it happens. Sometimes, they are stored hashed by SHA1. This is unacceptable because dictionary attacks and Jens Steube’s newly announced brute force attack makes them surprisingly vulnerable; but it happens. At the very least, passwords should be stored hashed with SHA1 – preferably better – and salted.
I for one would be reluctant to commit my password to any site that stores that password with anything less than salted SHA2. But they don’t tell us, do they.
So I call now for the European Commission to amend the proposed Data Protection Regulation to include a requirement for all sites that store user passwords to make it clear on their site, at registration, precisely how those passwords are stored: plaintext, hashed (with what), or hashed and salted. This is the only way we will be able to force vendors to improve the way in which they handle our data.