George Friedman
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In early December I received a call from Fred Burton, Stratfor's vice president of intelligence. He told me he had received information indicating our website had been hacked and our customer credit card and other information had been stolen. The following morning I met with an FBI special agent, who made clear that there was an ongoing investigation and asked for our cooperation. We, of course, agreed to cooperate. The matter remains under active investigation.

From the beginning I faced a dilemma. I felt bound to protect our customers, who quickly had to be informed about the compromise of their privacy. I also felt bound to protect the investigation. That immediate problem was solved when the FBI told us it had informed the various credit card companies and had provided those companies with a list of compromised cards while omitting that it had come from us. Our customers were therefore protected, as the credit card companies knew the credit cards and other information had been stolen and could act to protect the customers. We were not compelled to undermine the investigation.

The FBI made it clear that it expected the theft to be exposed by the hackers. We were under no illusion that this was going to be kept secret. We knew our reputation would be damaged by the revelation, all the more so because we had not encrypted the credit card files. This was a failure on our part. As the founder and CEO of Stratfor, I take responsibility for this failure, which has created hardship for customers and friends, and I deeply regret that it took place. The failure originated in the rapid growth of the company. As it grew, the management team and administrative processes didn't grow with it. Again, I regret that this occurred and want to assure everyone that Stratfor is taking aggressive steps to deal with the problem and ensure that it doesn't happen again.

From the beginning, it was not clear who the attackers were. The term "Anonymous" is the same as the term "unknown." The popular vision of Anonymous is that its members are young and committed to an ideology. I have no idea if this is true. As in most affairs like this, those who know don't talk; those who talk don't know. I have my theories, which are just that and aren't worth sharing.

I was prepared for the revelation of the theft and the inevitable criticism and negative publicity. We worked to improve our security infrastructure within the confines of time and the desire to protect the investigation by not letting the attackers know that we knew of their intrusion. With the credit card information stolen, I assumed that the worst was done. I was wrong.

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George Friedman

George Friedman is the CEO and chief intelligence officer of Stratfor, a private intelligence company located in Austin, TX.