Supply chain β›“ Supply Chain

CNN Business

πŸ“… 2017-09-27 🏒 [24]7.ai
Primary Source β†—

Incident Details

Between September 27 and October 12, 2017, an unauthorized third party gained access to [24]7.ai’s online customer service chat platform and injected malicious code designed to capture payment card information from customers interacting with the chat widget on client websites. [24]7.ai, a San Jose-based artificial intelligence and customer engagement company, provided online chat services to numerous major corporations including Delta Air Lines, Sears Holdings (including Kmart), and Best Buy. The breach was not disclosed to affected clients until approximately six months later. Delta reported it was first notified by [24]7.ai on March 28, 2018, and publicly disclosed the breach on April 4, 2018. Best Buy followed with its own disclosure on April 5, 2018. Sears Holdings confirmed approximately 100,000 customers had their payment card details compromised. Delta estimated several hundred thousand customers may have been affected. Best Buy stated that a small fraction of its online customers may have had payment information compromised. The compromised data included customer names, addresses, payment card numbers, CVV security codes, and card expiration dates – essentially all information needed for card-not-present fraud. The attack targeted the JavaScript code running in customers’ browsers during checkout and chat interactions, similar to Magecart-style web skimming attacks that became increasingly prevalent during this period. The incident triggered class-action lawsuits against both [24]7.ai and its affected clients. The six-to-seven-month delay between the breach occurring and clients being notified became a central point of criticism, as customers continued to use affected websites for months without knowledge of the compromise. The breach demonstrated how a single third-party vendor compromise could cascade across multiple major brands simultaneously, with the affected companies having limited visibility into the security of JavaScript code running on their sites from vendor-supplied widgets.

Technical Details

Initial Attack Vector
Malicious code injection into [24]7.ai online customer service chat widget
Vendor / Product
[24]7.ai
Supply Chain Attack
βœ… Confirmed third-party / vendor compromise

Timeline

  1. 2017-09-27 Breach occurred
  2. 2018-04-04 Publicly disclosed
  3. 2018-04-04 Customers notified