Masked thieves storm into Chicago colocation (again!)

[InfoSec News <alerts () infosecnews org>]

http://www.theregister.co.uk/2007/11/02/chicaco_datacenter_breaches/

By Dan Goodin
The Register
2nd November 2007

The recent armed robbery of a Chicago-based co-location facility has 
customers hopping mad after learning it was at least the fourth forced 
intrusion in two years. They want to know how C I Host [1], an operator 
that vaunts the security of its data centers, could allow the same one 
to be penetrated so many times.

"I can't believe a datacenter has been broken into that many times," 
said Nick Krapf, president of Bloodservers.com [2], a startup game 
hosting provider, who said $15,000 worth of Dell servers were stolen in 
the October 2 heist. "What do you got to do to secure your facility for 
it not to happen? We're pulling all our equipment from all their other 
facilities."

In recent years, many IT administrators have found religion about 
installing security patches and deploying other measures such as 
intrusion prevention systems to keep criminals from accessing their 
systems and the data stored on them. The series of break-ins at C I Host 
is a reminder that safeguards must also extend to more mundane 
protections, including dead-bolt locks and steel cages.

CI Host likes to vaunt the security of its Chicago-based colocation 
facility [3], noting that safeguards include multiple layers of 24x7 
security cameras, proximity card readers, biometric access controls and 
key pads, double-locking mantraps at data center entrance and 360-degree 
perimeter and roof surveillance. And yet, the same location has been the 
target of at least four burglaries or robberies since August 2005, 
according to police reports and former customers, some of whom say they 
lost sensitive data and hundreds of thousands of dollars in hardware.

Representatives from C I Host didn't respond to emails requesting 
comment for this story.

In the most recent incident, "at least two masked intruders entered the 
suite after cutting into the reinforced walls with a power saw," 
according to a letter C I Host officials sent customers. "During the 
robbery, C I Host's night manager was repeatedly tazered and struck with 
a blunt instrument. After violently attacking the manager, the intruders 
stole equipment belonging to C I Host and its customers." At least 20 
data servers were stolen, said Patrick Camden, deputy director of news 
affairs for the Chicago Police Department.

The Chicago location has been hit by similar breaches in the past, 
according to police reports. One report detailing an occurrence on 
September 23, 2005, recounts a "hole cut through the wall coming out 
onto the hallway of third floor." During a September 20, 2006 incident, 
an intruder "placed a silver + blk handgun to [victim's] head and stated 
'lay down on the floor.'" The victim, a C I Host employee, was then 
blindfolded, bound with black tape and struck on the head with a weapon, 
according to the report.

To add insult to injury, C I Host representatives haven't been 
particularly quick to alert customers of the robberies. It took them 
several days to admit the most recent breach, according to several 
customers who say they lost equipment. According to James F. Ruffer III, 
support people told him his server was down because the company had a 
problem with one of its routers. Krapf, the Bloodservers.com president, 
said he was told the same thing, as did several people recounting their 
experience on this forum [4].

"From a business owner perspective, my reputation is worth more to me 
than money," said Ruffer. "The longer they waited the more money each 
particular person was losing. They should have been upfront and right on 
the ball."

If you have information about security breaches affecting C I Host or 
other data center operators, please contact Dan Goodin using this link [5].

[1] http://www.cihost.com/
[2] http://bloodservers.com/
[3] http://www.cihost.com/about/data-centers/specifications/cdc03.php
[4] http://www.webhostingtalk.com/showthread.php?t=639284
[5] http://forms.theregister.co.uk/mail_author/?story_url=/2007/11/02/chicaco_datacenter_breaches/


__________________________________________________________________      
CSI 2007 is the only conference that delivers a business-focused
overview of enterprise security. It will convene 1,500+ delegates,
80 exhibitors and features 100+ sessions/seminars providing a
roadmap for integrating policies and procedures with new tools
and techniques.  Register now for savings on conference fees   
and/or free exhibits admission. - www.csiannual.com