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Does Microsoft Owe Westpac Money? 2 February 2004 Edition
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At long, long last, Microsoft is going to fix the exploit in Internet Explorer that has allowed evil sods to launch phishing expeditions that snag valuable information such as Net users online banking, Paypal and eBay login details.

One could argue that it's better late than never -- although I doubt that anyone who has lost a fistful of money to one of these exploits would agree.

And this raises the issue of who's liable if money is lost when criminals exploit known exploits in software.

Take, for example, the case of the Westpac Bank which has surely lost a wad of cash to these phishers after reimbursing customers who fell foul of such scams.

I found this story (Stuff) rather interesting because it makes the point that ignorance is no excuse when online crime is involved.


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One could argue that such a perspective is fair enough -- after all, nobody with even half a brain could enter into a money-laundering transaction such as the one described without being at least slightly suspicious.

But Microsoft has known about the URL exploit that allowed these scammers to steal passwords and gain access to peoples' bank accounts for quite some time -- so how come nobody's suing them for damages?

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I mean let's face it -- Microsoft's negligence in knowingly shipping a product that allowed such spoofing of URLs must be considered a major factor in these crimes.

If I sold a padlock that, unknown to those who purchased it, be opened using *any* key, don't you think I'd have a pretty good case to sue the manufacturer if someone who knew about the vulnerability came along and stole whatever it was that the padlock was supposedly protecting?

The average Net user is told that login details are protected by a powerful 128-bit encryption scheme which ensures their details remain secret -- so they use their copy of IE in the assumption that it's a safe tool which is protecting their valuable data.

But the reality is, that due to the URL spoofing flaw, their details may not be safe -- they may actually be going straight to the gangster who wants their hard-earned cash.

Now I've used IE as an example, because it's very topical right now -- but Microsoft isn't the only company that must take some responsibility for the robustness and reliability of their products.

Okay, software can, and usually does, have bugs.

After all, there's a little remotely controlled buggy sitting on the surface of Mars right now that seems to have fallen victim to a piece of code that perhaps wasn't properly designed or tested. As a result, the creation of too many files in its flash-memory has thrown it into a spin -- something that should never happen -- but it did.

So is it fair to say that all software vendors should be held accountable for losses associated with any bugs in their code?

Hell no -- that'd be clearly ridiculous -- nobody would dare release any software if that were the case.

However, where a company refuses to fix a known vulnerability (such as the IE URL spoofing hole) then I strongly believe that those who suffer loss should be entitled to claim that loss from the vendor.

You don't have to build perfect software -- but you do have to fix it when you know it has a flaw that threatens your clients' security or the integrity of their systems. This is where Microsoft, until now, has been grossly negligent.

Let's hope it's not a situation they'll alow to be repeated.

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