Thursday, January 30, 2014

The value of virtual goods and money.

This is one view of a huge EVE Online battle. I have no idea what's going on.

Two stories for this post that address something we'll be talking about later in the semester; virtual goods that have cost real time and real money, and the very timely topic of security.

The first story involves online game EVE Online that takes place in a vast universe. In this game, players build and pilot ships, mine for materials, form and join alliances and corporations, and engage in space battles. The catch is, everything happens in real time. If something says it will take "3 days" to complete, it will take three actual days. Some things take much longer, up to months. And in a curious twist, in game currency, known as ISK, can be used for real-world items.


Recently, a huge battle erupted in this online universe, over an unpaid in-game bill no less, that is estimated to have cost the equivalent of $500,000 (UPDATE: $570,000). As the article states, one of the consequences of this battle was the destruction of what are known as Titan ships, worth about $3,000 dollars each in terms of time investment, and take real-world months to build. The currency in EVE Online, as is the case with other virtual worlds, has a real-world exchange rate, although much of it is calculated through time invested. Second Life, referenced in the above link, has a virtual economy linked much more closely with the real world. Even so, players take their ISK seriously, with a huge scandal erupting when a 200 billion-ISK heist happened back in 2008.

I am only familiar with EVE Online through third party sources, so if anyone knows more about it be sure to fill us in in the comments!

That sets us up for the next story which is much more serious, and has implications that are much more far-reaching than even outer space, virtual as it may be.


In this case, Twitter user Naoki Hiroshima, whose Twitter handle was the very in-demand '@N,' was subjected to a social-engineering attack. He had been offered as much as $50,000 for that handle in the past, and attempts to steal it have been tried before as well. However when hackers used the very non-technical social-engineering approach, they finally got through. Convincing PayPal to release the last four digits of his credit card number to them, they then used that to take over all his web sites at GoDaddy and held them hostage. In order to get those domains back, he ended up handing over the details for his @N Twitter account.

A full account of the attack, it's resolution, along with an unparalleled and mesmerizing conversation with his attackers, can be found at this link. It's a fascinating, educational, and scary read.

UPDATE: Hmmmm.

10 comments:

  1. I cannot believe that someone would want a Twitter name so much that they would offer $50,000.00 or even hack his other accounts and hold them hostage. The fact that PayPal released the last four of his card number over the phone without asking any additional security questions is crazy. Companies who have peoples’ financial information on file should have a security protocol they have to go through to prove a caller is the account holder. It also sucks that GoDaddy declined his claim because he was not the account holder yet the whole point of the claim was because someone HACKED his account and took it over. It is fascinating to me that someone did all of this just to be able to obtain a certain name for Twitter. People will do unimaginable things if they want something bad enough.


    Stephanie Theobald

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  2. You go girl this happens all the time. I am not touching the virtual worlds. I have friends who got so involved with a game called "Everquest" he called into work and quit because he wanted to spend more time in that game. I like games that end for that reason. I think games are so realistic ie: XBOX one (I have and love it) PS4 are so close to realistic it is easy for people to lose themselves. Just another addiction.

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  3. The first part of the blog I honestly had no idea what any of it meant. I am not much of a computer gamer thus I was lost. On the other hand the second part of the article was insane; I do not own a tweeter and I barely go on Facebook. I would have never thought that a tweeter account would be worth 50,000 dollars. Maybe I just do not know the significance of having a "rare domain name" as they stated in the article. This is not really unheard of, there have been many "hacks" that happen every day. A couple of years ago the Ps3 (PlayStation 3) was hacked by a group of the name "Anonymous" which stole many credit card accounts and crashed the system for some time. All of us are targets the moment we put our information on the web that is way we must take security precautions in managing the information we hand out to these internet sources.

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  4. It is so hard to try to protect yourself when you don't really know all of the ways that these people can hack you. To hack someone for any reason is just wrong. To think that people would do it to force someone to give them something that doesn't belong to them and they are not entitled to is just ridiculous. I don't do any of the online games and only have a Facebook to keep up with my family across the world. Some people just lack morals and values. It's as simple as right and wrong. All of that for a domain name is just wrong. Shame on PayPal, they should protect every ones information as if it was their own.

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  5. It is crazy to see what people would do for some of the simplest things such as a twitter handle. I find it outrageous that someone went through the trouble of hacking Naoki pay pal account in order to bribe him to hand of his twitter @ name. It just proves that society has gotten smarter with hacking and technically are safety on the internet is almost nonexistent

    . -Devin Atkins

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  6. I think it is awesome that you are able to use the in-game currency to purchase real world items like the graphics card. The Facebook game myVegas is exactly like that.

    The article about the person who had all their stuff compromised over a twitter name is actually very scary. I'm highly considering calling PayPal and not only telling them to not give out my info over the phone but also to have them completely remove all of my information because that is scary beyond belief. I understand that having that simple of a username is probably very unique because it means that he most likely set that up when twitter was very first introduced. I wonder if there is any way to find out which employees at PayPal and GoDaddy compromised his accounts. I would definitely be taking up some sort of legal action with them!!!

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  7. When you sign up to join a social media site you're agreeing to the fact that your account might get hacked into. If it were my account and I got offered $50,000 I would let them hack me. I am not too much concerned with social media to being with. The fact that someone would go through that much trouble and money to just hack some ones account is incredible!
    -Kristen Lalli IS301

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  8. Although I have never been hacked, it seems easy for an hacker to get my personal information. I heard about it happening, but I didn't realize it was that easy, especially with PayPal. I like doing everything online, but now I wonder if that's a good idea. It makes me a little concerned.
    -Keith EP IS 301

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  9. I don't know what that virtual vs real world goods means to us really, is it real or not? If it's what some investors are actually using to make money, is it anything like Satoshi Nakamoto's virtual currency, the BitCoin. This currency, that is not backed up by anything I mind you, can by things in some countries around the world and even being considered as currency here in Vegas, "WHAT?" A virtual currency that has no backing and has stock options. Bit-coin's stock is now worth approximately $1200. US dollars. That is for 1 BitCoin, and was only $20. US dollars less than a year ago. Does anyone know what this means?

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  10. Wow, what a story. I cant believe this happened and no one went to jail. He should be able to take him to court at least for his pain and suffering. I read the whole article that was linked, and am just stunned by how arrogant the attacker sounds. He even gave the inside scoop on how he did it. What a work of art. I defiantly will take the advise he gives in order to protect myself. This is going to make an interesting topic of conversation at lunch on Monday. There are laws out there from preventing this type of bullying to go on. I don't have a Twitter account personally and after reading this I don't want one.

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