Leaked email shows HBO negotiating with hackers

BOSTON (AP) — Hackers released an email from HBO in which the company expressed willingness to pay them $250,000 as part of a negotiation over electronic data swiped from HBO's servers.

The July 27 email was sent by John Beyler, an HBO executive who thanked the hackers for "making us aware" of previously unknown security vulnerabilities. The executive asked for a 1-week delay and said HBO was willing to make a "good faith" payment of $250,000, calling it a "bug bounty" reward for IT professionals rather than a ransom.

HBO declined to comment. A person close to the investigation confirmed the authenticity of the email, but said it was an attempt to buy time and assess the situation.

The same hackers have subsequently released two dumps of HBO material and demanded a multi-million dollar ransom.

Whether or not HBO ever intended to follow through with its $250,000 offer, the email raised questions Friday among security professionals about the importance of the data as well as how it will affect future attacks.

"It's interesting that they're spinning it as a bug bounty program," said Pablo Garcia, CEO of FFRI North America, based in Aliso Viejo, California. "They're being extorted. If it was a bug bounty, it'd be on the up and up."

Beyler's email to the hackers said the company was working "very hard" to review all the material they provided, and also trying to figure out a way to make a large transaction in bitcoin, the hackers' preferred payment method.

"You have the advantage of having surprised us," Beyler wrote. "In the spirit of professional cooperation, we are asking you to extend your deadline for one week."

The first HBO hack became publicly known on July 31. Then, last week, hackers using the name "Mr. Smith" posted a fresh cache of stolen HBO files online, and demanded that the network pay a ransom of several million dollars to prevent further such releases.