Cloud Pets

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Cloud Pets: the toy that leaked 2 Million kids’ voice mails

In 2015, the company Spiral Toys Inc. launched an innovative product that was described as “The best
toy in history of toys.”, Cloud Pets.

These toys have the ability to store and replay voice messages. Sending messages through Cloud Pets
was easy. Cloud Pets toys connect to mobile apps and let parents or loved ones send messages to their
children that are played through the stuffed animal. That means travelling parents or a deployed military
member could send a heartfelt message through their child’s teddy bear at home, to be replayed when
their child interacts with the bear.

When you create an account with Cloud Pets, you give it your child’s name, an email address, and a
photo. All voice messages and information sent through the Cloud Pets doll were saved in a database
run by Spiral Toys Inc.

Over the years, Spiral Toys went bankrupt. One of their largest expenses was the cost of storing and
protecting customer’s data. To cut costs, they saved the data in an insecure database that didn’t require
authentication to access. In other words, anyone could find and open this database without even
needing a password.

Troy Hunt, an independent security researcher and data breach expert, received a message by someone
who claimed they had a copy of the Cloud Pets database. As proof, the informant sent Hunt a snippet
containing half a million records of Cloud Pets customers. Hunt verified the data sent to him, as he knew
someone who had bought their daughter a Cloud Pet, so could check that person’s login details against
the leaked data. In no time, Hunt found that person’s information.

The only way to stop any disasters from coming was to warn Spiral Toys of their mistake. But the person
who informed Hunt had already sent multiple emails to Spiral Toys to warn them but his emails were
either bounced back at him or never got a reply back. Knowing sending an email to Spiral Toys wouldn’t
work, Hunt decided to call the company instead. But that was even worse because Spiral Toys’ contact
information was a mess.

Hunt then realized that the Cloud Pet’s database was scanned and put on Shodan (a popular search
engine for finding connected things.), increasing the chance of cyber criminals finding the database.
Since Spiral Toys didn’t take any action, Hunt decided to go public. Hunt hoped the media’s pressure
would make the company secure its database, but unfortunately, Hackers already found the Cloud Pets’
data.

Cyber criminals found the data base and stole it. But they didn’t just steal it, they also wiped out the
entire database. In the place of the data was a ransom note demanding Bitcoin as payment to return the
data. When parents found out about the ransom, they sent angry emails to Spiral Toys, demanding for
answers. However, their questions still didn’t get an answer because Spiral Toys’ emails and phone lines
still weren’t active.

Spiral Toys finally made a statement because of the pressure from the media. Parents wanted an
apology and a solution but what they got was a series of excuses which made them angrier.
The public backlash was so strong that Amazon, Target, and Walmart pulled Cloud Pets dolls from their
stores because they didn’t want to be associated with a company that fumbled such a serious security
breach.

Senator Bill Delson, D-Fla., has already sent a letter to Spiral Toys demanding answers about the breach.
Ultimately, there could be criminal charges depending on the facts of the case.

Paying a ransom doesn’t guarantee that the data will be returned, so Cloud Pets never payed it. Besides,
Spiral Toys was so broke that they didn’t have the money to pay it even if they wanted to. This also
meant that hackers were still holding onto that data and could use it in different ways.

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