Sony Apologizes, Offers $1 Million Insurance to Users Affect

May 06, 2011

Sony Corp. Chairman Howard Stringer apologized and offered U.S. customers of PlayStation Network and Qriocity online entertainment services a year of free identity-theft protection after the system was crippled by hackers. Stringer said in an announcement, "We are absolutely dedicated to restoring full and safe service as soon as possible and rewarding you for your patience. We will settle for nothing less." Japan's biggest consumer-electronics exporter will offer a $1 million insurance policy per user, covering legal expenses, identity-restoration costs and lost wages that occur after data is stolen. The announcement follows last month's hacking of Sony's online entertainment and games platforms when the Tokyo-based company was criticized by U.S. lawmakers for not informing users of the breach quick enough. The shares fell to their lowest in a week in Tokyo today after Sony increased the total number of accounts that were comprised to 101.6 million. The company noted that weeks before several Sony divisions had been the target of a large-scale, coordinated denial-of-service attack by Anonymous, a hacker-activist group. Sony was singled out in a statement by 'Anonymous' after the company sued George Hotz, a 21-year-old hacker who publicized instructions for playing unauthorized games on the PlayStation console. Legal and technology costs are likely to increase because of the incident, further hurting Sony's credit profile, Moody's Japan said in a statement May 2. Sony has an A3 rating at Moody's with a 'stable' outlook.