Ineffective Encryption?
I found the Encryption FAQ on their press release to be a little disingenuous;
"We encrypt our data as a standard. Due to the particular circumstances of this incident, the unauthorized access also enabled the decrypting of data.
However, it is also our practice to tokenize select data fields, most notably Social Security numbers and account numbers. Tokenization involves the substitution of the sensitive field with a cryptographically generated replacement. The method and keys to unlock the tokenized fields are different from those used to encrypt the data. Tokenized data remained protected."
To me, it would seem that other than selective tokenisation, they are just using some form of full disk or transparent encryption of data at rest.
Great if someone can walk into a data center and walk out with the disk, but otherwise fallible to any legitimate command that can coerce the data off the disk.
Perhaps if they had looked at encrypting/decrypting in application in conjunction with HSMs or similar, then the risk of such a clear-text exposure could have been more reduced?