Video 3 (Cyber Crime Incidents)

November 24, 2014, was supposed to be an ordinary Monday for the employees of Sony Pictures
Entertainment. The holiday season was around the corner, and the company was gearing up for the
release of its next big movie, “The Interview,” a comedy about the assassination of North Korean leader
Kim Jong-un. But what was about to unfold was far from funny.

That morning, when employees tried to log into their computers, they were met with a chilling sight.
Their screens were taken over by a red skull with glowing eyes, accompanied by a stark message:
“Hacked by #GOP.” This was no prank. The “Guardians of Peace,” as they called themselves, had
infiltrated Sony’s entire computer network, and they weren’t just there to cause a nuisance. They were
there to destroy.

In the days leading up to the attack, there had been whispers of something brewing. Some employees
noticed strange activities on the network—sluggish performance, odd files appearing and disappearing
—but these were dismissed as technical glitches. No one suspected that a full-scale cyberattack was
underway, orchestrated by a group with a grudge and the skills to back it up.

The first sign that this was more than a typical hack was the sheer scale of the data stolen. The hackers
had gained access to a trove of confidential information: unreleased movies, employee personal data,
sensitive emails, and financial records. It was clear that they had been inside Sony’s systems for months,
moving silently, gathering information, and waiting for the right moment to strike.

The leak began almost immediately. On November 27, just three days after the initial attack, the first
batch of stolen data was released online. It included five unreleased Sony films, including “Annie” and
“Fury,” both of which were expected to be major hits. Within hours, these films were being downloaded
illegally by thousands of people around the world. Sony’s revenue stream from these movies was
instantly compromised.

But the hackers weren’t done. They began releasing batches of emails, starting with some of the most
sensitive and potentially damaging communications within the company. These emails revealed candid,
and often unflattering, comments about Hollywood stars, deals that hadn’t been finalized, and internal
power struggles. The leaks were timed for maximum impact, ensuring that the media would have fresh
material to publish day after day.

The contents of these emails became the talk of Hollywood. They exposed the inner workings of one of
the industry’s biggest studios, painting a picture of backstabbing, ego clashes, and ruthless business
tactics. Celebrities like Angelina Jolie, whose emails were particularly harsh, were caught in the crossfire.
Relationships that had taken years to build were shattered overnight.

As the leaks continued, Sony’s leadership was thrown into crisis mode. Executives were scrambling to
figure out what had been taken, how much damage had been done, and what could be done to stop it.
But every move they made seemed to be one step behind the hackers. The attackers seemed to
anticipate Sony’s every response, releasing new information just as the company was trying to regain
control of the situation.

Behind the scenes, the FBI and other cybersecurity experts were brought in to investigate. The hackers
had covered their tracks well, but the scale and sophistication of the attack pointed to a state-sponsored
operation. All eyes quickly turned to North Korea, given the timing with “The Interview.” The regime had
already condemned the movie, calling it a “blatant act of terrorism,” and had hinted at “serious
consequences” if it was released.

The FBI’s investigation led them to a group known as “Lazarus,” a hacking collective believed to be
connected to the North Korean government. They had been linked to previous cyberattacks, including
an attack on South Korean banks and media companies. The tools and methods used in those attacks
bore striking similarities to the Sony hack. Despite North Korea’s denials, the evidence seemed
overwhelming.

As the investigation continued, the hackers intensified their threats. On December 16, they issued a
warning to Sony and any theater planning to show “The Interview.” They referenced the 9/11 attacks,
stating, “The world will be full of fear. Remember the 11th of September 2001.” This message sent
shockwaves through the industry. Major theater chains, fearing violence, announced they would not
show the film. Under immense pressure, Sony canceled the Christmas Day release of “The Interview.”

This decision sparked outrage and debate across the country. Critics accused Sony of caving to terrorist
threats, arguing that this set a dangerous precedent for censorship. Others believed that Sony had no
choice, given the potential risks. The situation highlighted the difficult position companies face when
dealing with cyber threats that have real-world implications.

Despite the cancellation, the hackers continued to release data, seemingly emboldened by their success.
They leaked more emails, more documents, and more films. Sony’s reputation was in tatters, and the
financial losses were mounting. The company had to rebuild its entire IT infrastructure, a process that
would take months and cost millions of dollars.
As Sony struggled to recover, the U.S. government took action. On January 2, 2015, President Barack
Obama signed an executive order imposing sanctions on North Korea in response to the hack. The
sanctions targeted government officials and entities involved in the attack. While this was largely
symbolic, it marked one of the first times that a cyberattack had been met with such a strong political
response.

Meanwhile, the fallout within Sony continued. Amy Pascal, the co-chairman of Sony Pictures, was one of
the highest-profile casualties. Her emails had been among the most damaging, and in February 2015,
she stepped down from her position. The company’s leadership was overhauled, and a new focus on
cybersecurity was implemented across the board.

The Sony Pictures hack also had broader implications for the industry. Other studios and companies
began to take cybersecurity much more seriously, investing in stronger defenses and preparing for the
possibility of a similar attack. The entertainment industry, which had been relatively insulated from the
world of cybersecurity, was now on high alert.

In the years since the hack, the debate over who was truly responsible has persisted. While the FBI
stands by its conclusion that North Korea was behind the attack, some cybersecurity experts have raised
questions. They point to the possibility that the hack was carried out by a disgruntled insider, possibly in
collaboration with external hackers. The full truth may never be known.

What is clear, however, is that the Sony Pictures hack was a turning point in the world of cybersecurity.
It showed that even the most powerful companies could be brought to their knees by a determined
group of hackers. It exposed the vulnerabilities in our digital world and the devastating consequences of
those vulnerabilities being exploited.

The legacy of the Sony hack lives on in the lessons learned and the changes made in its aftermath.
Companies around the world have been forced to rethink how they protect their data and how they
respond to cyber threats. The hack was a wake-up call, one that continues to resonate in an increasingly
connected and digital world.

And for Sony, the scars of that attack are still visible. The company has moved on, but the memory of
those chaotic weeks in late 2014 remains a reminder of just how fragile our digital lives can be.