This week we have seen another example of why you can’t be too paranoid about Internet security.
Code Spaces, a company that specializes in svn hosting (hosting your source code so your team can access it) announced that their servers were hacked big time. Apparently, the perpetrator began with a Denial of Service Attack then gained access to Code Spaces’ Amazon EC2 account. He or she then contacted Code Spaces via email in an attempt to extort a large fee to stop the attack. When the folks at Code Spaces attempted to take back control of their Amazon EC2 account, the hacker deleted all of their data including backups and off-site backups. Unable to recover, Code Spaces has made the decision to shutdown completely. The cost of the attack is just too great to continue.